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, reported the following results:
(in millions, except per share
data) |
First Quarter |
|
|
2024 |
|
|
2023 |
Sales |
$ |
13,319 |
|
$ |
13,260 |
|
|
|
|
Operating Income |
$ |
231 |
|
$ |
467 |
Adjusted1 Operating Income
(non-GAAP) |
$ |
411 |
|
$ |
453 |
|
|
|
|
Net Income Per Share
Attributable to Tyson |
$ |
0.30 |
|
$ |
0.88 |
Adjusted1 Net Income Per Share
Attributable to Tyson (non-GAAP) |
$ |
0.69 |
|
$ |
0.85 |
1 The Company reports its financial results in accordance with
U.S. generally accepted accounting principles (GAAP). As used in
this table and throughout this earnings release, 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
- Sales of $13,319 million, up 0.4% from prior
year
- GAAP operating income of $231 million, down 51% from
prior year
- Adjusted operating income of $411 million, down 9% from
prior year
- GAAP EPS of $0.30, down 66% from prior
year
- Adjusted EPS of $0.69, down 19% from prior
year
- Total Company GAAP operating margin of
1.7%
- Total Company adjusted operating margin (non-GAAP) of
3.1%
- Liquidity of approximately $3.7 billion as of December
30, 2023
"Our team executed well in the quarter and
delivered tangible results, including our third sequential quarter
of adjusted operating income growth," said Donnie King, President
& CEO, Tyson Foods. "We saw the benefits of our diverse protein
portfolio and realization of operational efficiencies from the
strategic decisions we made in the past year."
"Although we still have work to do, I am pleased with our first
quarter results and am confident we are on the right path to
deliver long-term shareholder value," King concluded. "Going
forward, we will continue to prioritize our liquidity and financial
health, our focus on operational excellence, and our relentless
pursuit to win with customers and consumers."
SEGMENT RESULTS (in millions)
Sales |
(for the first quarter ended December 30, 2023, and December 31,
2022) |
|
First Quarter |
|
|
|
Volume |
Avg. Price |
|
|
2024 |
|
|
2023 |
|
Change |
Change |
Beef |
$ |
5,023 |
|
$ |
4,723 |
|
(4.1)% |
10.5 |
% |
Pork |
|
1,517 |
|
|
1,529 |
|
7.7 |
% |
(8.5)% |
Chicken |
|
4,033 |
|
|
4,263 |
|
(1.5)% |
(3.9)% |
Prepared
Foods |
|
2,543 |
|
|
2,538 |
|
2.5 |
% |
(2.3)% |
International/Other |
|
582 |
|
|
612 |
|
2.2 |
% |
(7.1)% |
Intersegment
Sales |
|
(379 |
) |
|
(405 |
) |
n/a |
n/a |
Total |
$ |
13,319 |
|
$ |
13,260 |
|
— |
% |
0.4 |
% |
Operating Income (Loss) |
(for the first quarter ended December 30, 2023, and December 31,
2022) |
|
First Quarter |
|
|
|
Operating Margin |
|
|
2024 |
|
|
2023 |
|
2024 |
|
2023 |
|
Beef |
$ |
(206 |
) |
$ |
166 |
|
(4.1)% |
3.5 |
% |
Pork |
|
39 |
|
|
(21 |
) |
2.6 |
% |
(1.4)% |
Chicken |
|
177 |
|
|
69 |
|
4.4 |
% |
1.6 |
% |
Prepared
Foods |
|
243 |
|
|
258 |
|
9.6 |
% |
10.2 |
% |
International/Other |
|
(22 |
) |
|
(5 |
) |
n/a |
n/a |
Total |
$ |
231 |
|
$ |
467 |
|
1.7 |
% |
3.5 |
% |
ADJUSTED SEGMENT RESULTS (in millions)
Adjusted Operating Income (Loss)
(Non-GAAP)1 |
(for the first quarter ended December 30, 2023, and December 31,
2022) |
|
First Quarter |
|
|
|
Adjusted Operating Margin (Non-GAAP) |
|
|
2024 |
|
|
2023 |
|
2024 |
|
2023 |
|
Beef |
$ |
(117 |
) |
$ |
129 |
|
(2.3)% |
2.7 |
% |
Pork |
|
68 |
|
|
(19 |
) |
4.5 |
% |
(1.2)% |
Chicken |
|
192 |
|
|
77 |
|
4.8 |
% |
1.8 |
% |
Prepared
Foods |
|
264 |
|
|
266 |
|
10.4 |
% |
10.5 |
% |
International/Other |
|
4 |
|
|
— |
|
n/a |
n/a |
Total |
$ |
411 |
|
$ |
453 |
|
3.1 |
% |
3.4 |
% |
OUTLOOKFor fiscal 2024, the United States
Department of Agriculture (USDA) indicates domestic protein
production (beef, pork, chicken and turkey) should increase
slightly compared to fiscal 2023 levels. The following is a summary
of the updated outlook for each of our segments, as well as an
outlook for revenues, capital expenditures, net interest expense,
liquidity and tax rate for fiscal 2024. Certain of the outlook
numbers include adjusted operating income (loss) (a non-GAAP
metric) for each segment. The Company is not able to reconcile its
full-year fiscal 2024 projected adjusted results to its fiscal 2024
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 and the
amount of any potential applicable future adjustments, which could
be significant, the Company is unable to provide a reconciliation
for these forward-looking non-GAAP measures without unreasonable
effort. Adjusted operating income (loss) should not be considered a
substitute for operating income (loss) 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.
BeefUSDA projects domestic production will
decrease approximately 2% in fiscal 2024 as compared to fiscal
2023. We anticipate adjusted operating income (loss) between ($400)
million and breakeven in fiscal 2024.
PorkUSDA projects domestic production will
increase approximately 2% in fiscal 2024 as compared to fiscal
2023. We anticipate adjusted operating income of breakeven to $100
million in fiscal 2024.
ChickenUSDA projects chicken production will be
flat in fiscal 2024 as compared to fiscal 2023. We anticipate
adjusted operating income of $500 million to $700 million for
fiscal 2024.
Prepared FoodsWe anticipate adjusted operating
income of $800 million to $1 billion in fiscal 2024.
International/OtherWe anticipate improved
results from our foreign operations in fiscal 2024 on an adjusted
basis.
Total CompanyWe anticipate total company
adjusted operating income of $1.0 billion to $1.5 billion for
fiscal 2024.
RevenueWe expect sales to be relatively flat in
fiscal 2024 as compared to fiscal 2023.
Capital ExpendituresWe expect capital
expenditures between $1.0 billion and $1.5 billion for fiscal 2024.
Capital expenditures include investments in profit improvement
projects as well as projects for maintenance and repair. This
includes completion of capacity expansion projects as well as new
equipment, automation technology and processes for product
innovation.
Net Interest ExpenseWe expect net interest
expense to approximate $400 million for fiscal 2024.
LiquidityWe expect total liquidity, which was
approximately $3.7 billion as of December 30, 2023, to remain
above our minimum liquidity target of $1.0 billion.
Tax RateWe currently expect our adjusted
effective tax rate to be 23% to 24% for fiscal 2024.
TYSON FOODS, INC.CONSOLIDATED
CONDENSED STATEMENTS OF INCOME(In millions, except
per share data)(Unaudited) |
|
Three Months Ended |
|
December 30, 2023 |
|
December 31, 2022 |
Sales |
$ |
13,319 |
|
|
$ |
13,260 |
|
Cost of Sales |
|
12,496 |
|
|
|
12,292 |
|
Gross Profit |
|
823 |
|
|
|
968 |
|
|
|
|
|
Selling, General and
Administrative |
|
592 |
|
|
|
501 |
|
Operating Income |
|
231 |
|
|
|
467 |
|
Other (Income) Expense: |
|
|
|
Interest income |
|
(10 |
) |
|
|
(9 |
) |
Interest expense |
|
105 |
|
|
|
84 |
|
Other, net |
|
(25 |
) |
|
|
(42 |
) |
Total Other (Income)
Expense |
|
70 |
|
|
|
33 |
|
Income before Income
Taxes |
|
161 |
|
|
|
434 |
|
Income Tax Expense |
|
47 |
|
|
|
114 |
|
Net Income |
|
114 |
|
|
|
320 |
|
Less: Net Income Attributable
to Noncontrolling Interests |
|
7 |
|
|
|
4 |
|
Net Income Attributable to
Tyson |
$ |
107 |
|
|
$ |
316 |
|
Net Income Per Share
Attributable to Tyson: |
|
|
|
Class A Basic |
$ |
0.31 |
|
|
$ |
0.91 |
|
Class B Basic |
$ |
0.28 |
|
|
$ |
0.81 |
|
Diluted |
$ |
0.30 |
|
|
$ |
0.88 |
|
Dividends Declared Per
Share: |
|
|
|
Class A |
$ |
0.500 |
|
|
$ |
0.500 |
|
Class B |
$ |
0.450 |
|
|
$ |
0.450 |
|
|
|
|
|
Sales Growth |
|
0.4 |
% |
|
|
Margins: (Percent of
Sales) |
|
|
|
Gross Profit |
|
6.2 |
% |
|
|
7.3 |
% |
Operating Income |
|
1.7 |
% |
|
|
3.5 |
% |
Net Income Attributable to Tyson |
|
0.8 |
% |
|
|
2.4 |
% |
Effective Tax Rate |
|
29.4 |
% |
|
|
26.1 |
% |
TYSON FOODS, INC.CONSOLIDATED CONDENSED
BALANCE SHEETS(In
millions)(Unaudited) |
|
December 30, 2023 |
|
September 30, 2023 |
Assets |
|
|
|
Current Assets: |
|
|
|
Cash and cash equivalents |
$ |
1,484 |
|
$ |
573 |
Accounts receivable, net |
|
2,263 |
|
|
2,476 |
Inventories |
|
5,087 |
|
|
5,328 |
Other current assets |
|
382 |
|
|
345 |
Total Current Assets |
|
9,216 |
|
|
8,722 |
Net Property, Plant and
Equipment |
|
9,672 |
|
|
9,634 |
Goodwill |
|
9,885 |
|
|
9,878 |
Intangible Assets, net |
|
6,046 |
|
|
6,098 |
Other Assets |
|
1,927 |
|
|
1,919 |
Total Assets |
$ |
36,746 |
|
$ |
36,251 |
|
|
|
|
Liabilities and
Shareholders’ Equity |
|
|
|
Current Liabilities: |
|
|
|
Current debt |
$ |
1,308 |
|
$ |
1,895 |
Accounts payable |
|
2,623 |
|
|
2,594 |
Other current liabilities |
|
2,241 |
|
|
2,010 |
Total Current Liabilities |
|
6,172 |
|
|
6,499 |
Long-Term Debt |
|
8,370 |
|
|
7,611 |
Deferred Income Taxes |
|
2,302 |
|
|
2,308 |
Other Liabilities |
|
1,614 |
|
|
1,578 |
|
|
|
|
Total Tyson Shareholders’
Equity |
|
18,150 |
|
|
18,133 |
Noncontrolling Interests |
|
138 |
|
|
122 |
Total Shareholders’
Equity |
|
18,288 |
|
|
18,255 |
|
|
|
|
Total Liabilities and
Shareholders’ Equity |
$ |
36,746 |
|
$ |
36,251 |
TYSON FOODS, INC.CONSOLIDATED CONDENSED
STATEMENTS OF CASH FLOWS(In
millions)(Unaudited) |
|
Three Months Ended |
|
December 30, 2023 |
|
December 31, 2022 |
Cash Flows From Operating
Activities: |
|
|
|
Net income |
$ |
114 |
|
|
$ |
320 |
|
Depreciation and amortization |
|
373 |
|
|
|
303 |
|
Deferred income taxes |
|
(14 |
) |
|
|
8 |
|
Other, net |
|
129 |
|
|
|
68 |
|
Net changes in operating assets and liabilities |
|
698 |
|
|
|
63 |
|
Cash Provided by Operating
Activities |
|
1,300 |
|
|
|
762 |
|
|
|
|
|
Cash Flows From Investing
Activities: |
|
|
|
Additions to property, plant and equipment |
|
(354 |
) |
|
|
(589 |
) |
Purchases of marketable securities |
|
(7 |
) |
|
|
(7 |
) |
Proceeds from sale of marketable securities |
|
6 |
|
|
|
7 |
|
Acquisitions, net of cash acquired |
|
— |
|
|
|
(39 |
) |
Acquisition of equity investments |
|
(26 |
) |
|
|
(36 |
) |
Other, net |
|
3 |
|
|
|
(5 |
) |
Cash Used for Investing
Activities |
|
(378 |
) |
|
|
(669 |
) |
|
|
|
|
Cash Flows From Financing
Activities: |
|
|
|
Proceeds from issuance of debt |
|
771 |
|
|
|
54 |
|
Payments on debt |
|
(32 |
) |
|
|
(58 |
) |
Proceeds from issuance of commercial paper |
|
1,649 |
|
|
|
— |
|
Repayments of commercial paper |
|
(2,240 |
) |
|
|
— |
|
Purchases of Tyson Class A common stock |
|
(13 |
) |
|
|
(313 |
) |
Dividends |
|
(171 |
) |
|
|
(169 |
) |
Stock options exercised |
|
7 |
|
|
|
4 |
|
Other, net |
|
3 |
|
|
|
— |
|
Cash Used for Financing
Activities |
|
(26 |
) |
|
|
(482 |
) |
Effect of Exchange Rate
Changes on Cash |
|
15 |
|
|
|
12 |
|
Increase (Decrease) in Cash
and Cash Equivalents and Restricted Cash |
|
911 |
|
|
|
(377 |
) |
Cash and Cash Equivalents and
Restricted Cash at Beginning of Year |
|
573 |
|
|
|
1,031 |
|
Cash and Cash Equivalents and
Restricted Cash at End of Period |
|
1,484 |
|
|
|
654 |
|
Less: Restricted Cash at End
of Period |
|
— |
|
|
|
— |
|
Cash and Cash Equivalents at
End of Period |
$ |
1,484 |
|
|
$ |
654 |
|
|
|
|
|
Non-GAAP Financial Measures
Adjusted Operating Income (Loss), Adjusted Income before Income
Taxes, Adjusted Income Tax Expense, Adjusted Net Income
Attributable to Tyson and Adjusted EPS, EBITDA, Adjusted EBITDA,
net debt to EBITDA and net debt to Adjusted EBITDA are presented as
supplemental financial measures in the evaluation of our business
that are not required by, or presented in accordance with GAAP. The
non-GAAP financial measures are tools 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. These
non-GAAP measures should not be a substitute for their comparable
GAAP financial measures. Investors should rely primarily on our
GAAP results and use non-GAAP financial measures only
supplementally in making investment decisions. We believe the
presentation of these non-GAAP 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. Our
calculation of non-GAAP measures may not be comparable to similarly
titled measures reported by other companies and other companies may
not define these non-GAAP financial measures in the same way, which
may limit their usefulness of comparative measures.
Definitions
EBITDA is defined as net income (loss) 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, Adjusted Operating Income, Adjusted
Income before Income Taxes, Adjusted Income Tax Expense, Adjusted
Net Income Attributable to Tyson and Adjusted EPS are
defined as EBITDA, Operating Income, Income before Income Taxes,
Income Tax Expense, Net Income Attributable to Tyson and diluted
earnings per share, respectively, excluding the impacts of any
items that management believes do not directly reflect our core
operations on an ongoing basis.
TYSON FOODS, INC.GAAP Results to Non-GAAP
Results Reconciliations(In millions, except per
share
data)(Unaudited) |
Results for the first quarter ended December 30,
2023 |
|
Sales |
Cost of Sales |
Selling, General and Administrative |
Operating Income |
Other (Income) Expense |
Income before Income Taxes |
Income Tax Expense |
Net Income Attributable to Tyson |
EPS Impact |
GAAP Results |
|
|
|
$ |
231 |
|
|
$ |
161 |
|
$ |
47 |
|
$ |
107 |
|
$ |
0.30 |
|
Production facilities fire costs, net of insurance proceeds3 |
— |
2 |
|
— |
|
2 |
|
(3 |
) |
|
(1 |
) |
|
(6 |
) |
|
5 |
|
|
0.01 |
|
Restructuring and related charges |
— |
3 |
|
27 |
|
30 |
|
— |
|
|
30 |
|
|
8 |
|
|
22 |
|
|
0.06 |
|
Plant closures |
— |
75 |
|
— |
|
75 |
|
— |
|
|
75 |
|
|
19 |
|
|
56 |
|
|
0.16 |
|
Legal contingency accruals |
— |
73 |
|
— |
|
73 |
|
— |
|
|
73 |
|
|
18 |
|
|
55 |
|
|
0.16 |
|
Adjusted Non-GAAP Results |
|
|
|
$ |
411 |
|
|
$ |
338 |
|
$ |
86 |
|
$ |
245 |
|
$ |
0.69 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Results for the first quarter ended December 31,
2022 |
|
Sales |
Cost of Sales |
Selling, General and Administrative |
Operating Income |
Other (Income) Expense |
Income before Income Taxes |
Income Tax Expense |
Net Income Attributable to Tyson |
EPS Impact |
GAAP Results |
|
|
|
$ |
467 |
|
|
$ |
434 |
|
$ |
114 |
|
$ |
316 |
|
$ |
0.88 |
|
Production facilities fire insurance proceeds, net of costs3 |
— |
(35 |
) |
— |
|
(35 |
) |
— |
|
|
(35 |
) |
|
(8 |
) |
|
(27 |
) |
|
(0.07 |
) |
Restructuring and related charges |
— |
8 |
|
13 |
|
21 |
|
— |
|
|
21 |
|
|
5 |
|
|
16 |
|
|
0.04 |
|
Adjusted Non-GAAP Results |
|
|
|
$ |
453 |
|
|
$ |
420 |
|
$ |
111 |
|
$ |
305 |
|
$ |
0.85 |
|
TYSON FOODS, INC.Adjusted Operating Income (Loss)
Non-GAAP Reconciliations(In
millions)(Unaudited) |
Adjusted Operating Income
(Loss) |
(for the first quarter ended December 30,
2023) |
|
Beef |
|
Pork |
Chicken |
|
Prepared Foods |
International/Other |
|
Total |
Reported operating income (loss) |
$ |
(206 |
) |
$ |
39 |
$ |
177 |
|
$ |
243 |
$ |
(22 |
) |
$ |
231 |
Add/(Less): Production facilities fire insurance costs, net of
proceeds3 |
|
— |
|
|
— |
|
(24 |
) |
|
— |
|
26 |
|
|
2 |
Add: Restructuring and related charges |
|
4 |
|
|
1 |
|
4 |
|
|
21 |
|
— |
|
|
30 |
Add: Plant closures |
|
40 |
|
|
— |
|
35 |
|
|
— |
|
— |
|
|
75 |
Add: Legal contingency accruals |
|
45 |
|
|
28 |
|
— |
|
|
— |
|
— |
|
|
73 |
Adjusted operating income
(loss) |
$ |
(117 |
) |
$ |
68 |
$ |
192 |
|
$ |
264 |
$ |
4 |
|
$ |
411 |
Adjusted Operating Income (Loss) |
(for the first quarter ended December 31, 2022) |
|
Beef |
Pork |
Chicken |
Prepared Foods |
International/Other |
Total |
Reported operating income (loss) |
$ |
166 |
|
$ |
(21 |
) |
$ |
69 |
$ |
258 |
$ |
(5 |
) |
$ |
467 |
|
(Less)/Add: Production facilities fire insurance proceeds, net of
costs3 |
|
(42 |
) |
|
— |
|
|
7 |
|
— |
|
— |
|
|
(35 |
) |
Add: Restructuring and related charges |
|
5 |
|
|
2 |
|
|
1 |
|
8 |
|
5 |
|
|
21 |
|
Adjusted operating income
(loss) |
$ |
129 |
|
$ |
(19 |
) |
$ |
77 |
$ |
266 |
$ |
— |
|
$ |
453 |
|
TYSON FOODS, INC.EBITDA and Adjusted
EBITDA Non-GAAP Reconciliations(In
millions)(Unaudited) |
|
Three Months Ended |
|
Fiscal Year Ended |
|
Twelve Months Ended |
|
December 30, 2023 |
|
December 31, 2022 |
|
September 30, 2023 |
|
December 30, 2023 |
|
|
|
|
|
|
|
|
Net income (loss) |
$ |
114 |
|
|
$ |
320 |
|
|
$ |
(649 |
) |
|
$ |
(855 |
) |
Less: Interest income |
|
(10 |
) |
|
|
(9 |
) |
|
|
(30 |
) |
|
|
(31 |
) |
Add: Interest expense |
|
105 |
|
|
|
84 |
|
|
|
355 |
|
|
|
376 |
|
Add/(Less): Income tax expense
(benefit) |
|
47 |
|
|
|
114 |
|
|
|
(29 |
) |
|
|
(96 |
) |
Add: Depreciation |
|
312 |
|
|
|
243 |
|
|
|
1,100 |
|
|
|
1,169 |
|
Add: Amortization2 |
|
59 |
|
|
|
58 |
|
|
|
229 |
|
|
|
230 |
|
EBITDA |
$ |
627 |
|
|
$ |
810 |
|
|
$ |
976 |
|
|
$ |
793 |
|
|
|
|
|
|
|
|
|
Adjustments to EBITDA: |
|
|
|
|
|
|
|
Less: Production facilities
fire insurance proceeds, net of costs3 |
$ |
(1 |
) |
|
$ |
(35 |
) |
|
$ |
(75 |
) |
|
$ |
(41 |
) |
Add: Restructuring and related
charges |
|
30 |
|
|
|
21 |
|
|
|
124 |
|
|
|
133 |
|
Add: Plant closures |
|
75 |
|
|
|
— |
|
|
|
322 |
|
|
|
397 |
|
Add: Legal contingency
accruals |
|
73 |
|
|
|
— |
|
|
|
156 |
|
|
|
229 |
|
Add: Goodwill impairment |
|
— |
|
|
|
— |
|
|
|
781 |
|
|
|
781 |
|
Less: China plant relocation
remuneration |
|
— |
|
|
|
— |
|
|
|
(19 |
) |
|
|
(19 |
) |
Add: Product line
discontinuation |
|
— |
|
|
|
— |
|
|
|
17 |
|
|
|
17 |
|
Less: Depreciation included in
EBITDA adjustments4 |
|
(60 |
) |
|
|
(6 |
) |
|
|
(133 |
) |
|
|
(187 |
) |
Total Adjusted EBITDA |
$ |
744 |
|
|
$ |
790 |
|
|
$ |
2,149 |
|
|
$ |
2,103 |
|
|
|
|
|
|
|
|
|
Total gross debt |
|
|
|
|
$ |
9,506 |
|
|
$ |
9,678 |
|
Less: Cash and cash
equivalents |
|
|
|
|
|
(573 |
) |
|
|
(1,484 |
) |
Less: Short-term investments |
|
|
|
|
|
(15 |
) |
|
|
(15 |
) |
Total net debt |
|
|
|
|
$ |
8,918 |
|
|
$ |
8,179 |
|
|
|
|
|
|
|
|
|
Ratio Calculations: |
|
|
|
|
|
|
|
Gross debt/EBITDA |
|
|
|
|
9.7x |
|
12.2x |
Net debt/EBITDA |
|
|
|
|
9.1x |
|
10.3x |
|
|
|
|
|
|
|
|
Gross debt/Adjusted
EBITDA |
|
|
|
|
4.4x |
|
4.6x |
Net debt/Adjusted EBITDA |
|
|
|
|
4.1x |
|
3.9x |
2 Excludes the amortization of debt issuance and debt discount
expense of $2 million for the three months ended December 30,
2023 and December 31, 2022, and $10 million for the fiscal
year ended September 30, 2023 and the twelve months ended
December 30, 2023 as it is included in interest expense.
3 Relates to fires at production facilities in
International/Other in the first quarter of fiscal 2024, Chicken in
the fourth quarter of fiscal 2021 and Beef in the fourth quarter of
fiscal 2019.
4 Removal of accelerated depreciation of $60 million related to
plant closures for the three months ended December 30, 2023;
$6 million related to restructuring and related charges for the
three months ended December 31, 2022; $19 million related to
restructuring and related charges and $114 million related to plant
closures for the twelve months ended September 30, 2023; and $13
million related to restructuring and related charges and $174
million related to plant closures for the twelve months ended
December 30, 2023 as they are already included in depreciation
expense.
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 four 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®. Headquartered in
Springdale, Arkansas, the Company had approximately 139,000 team
members on September 30, 2023. 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 5, 2024. A
link for the webcast of the conference call is available on the
Tyson Investor Relations website at https://ir.tyson.com. The
webcast also can be accessed by the following direct link:
https://events.q4inc.com/attendee/679527774. For those who cannot
participate at the scheduled time, a replay of the live webcast and
the accompanying slides will be available at https://ir.tyson.com.
A telephone replay will also be available until Tuesday, March 5,
2024, 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 4412115. Financial information, such as this news
release, as well as other supplemental data, can be accessed from
the Company's web site at https://ir.tyson.com.
Forward-Looking StatementsCertain information
in this release 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 2024,
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) global pandemics have had, and
may in the future have, an adverse impact on our business and
operations; (ii) the effectiveness of restructuring or financial
excellence programs; (iii) access to foreign markets together with
foreign economic conditions, including currency fluctuations,
import/export restrictions and foreign politics; (iv) cyberattacks,
other 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 conduct our operations; (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, including as a result of our relocation of certain
corporate team members to our world headquarters in Springdale,
Arkansas; (xv) issues related to food safety, including costs
resulting from product recalls, regulatory compliance and any
related claims or litigation; (xvi) the effect of climate change
and any legal or regulatory response thereto; (xvii) 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; (xviii) adverse results from litigation; (xix) risks
associated with leverage, including cost increases due to rising
interest rates or changes in debt ratings or outlook; (xx)
impairment in the carrying value of our goodwill or indefinite life
intangible assets; (xxi) our participation in a multiemployer
pension plan; (xxii) volatility in capital markets or interest
rates; (xxiii) risks associated with our commodity purchasing
activities; (xxiv) the effect of, or changes in, general economic
conditions; (xxv) impacts on our operations caused by factors and
forces beyond our control, such as natural disasters, fire,
bioterrorism, pandemics, armed conflicts or extreme weather; (xxvi)
failure to maximize or assert our intellectual property rights;
(xxvii) effects related to changes in tax rates, valuation of
deferred tax assets and liabilities, or tax laws and their
interpretation; 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: Laura Burns,
479-713-9890Investor Contact: Sean Cornett, 479-466-0401 |
Source: Tyson Foods,
Inc.Category: IR, Newsroom |
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