Pilgrim’s Pride Corporation (NASDAQ: PPC) reports fourth quarter
and year-end 2019 financial results.
2019 Highlights
- Operating Income margins of 6.4% in U.S., 8.9% in Mexico and
3.3% in Europe operations, respectively.
- Net Income of $455.9 million, or an 84% increase from last
year.
- Adjusted EBITDA of $973.8 million, a 22% increase over 2018, or
an 8.5% margin.
- Portfolio strategy and geographic diversification reducing the
impact of challenging specific market conditions. EBITDA outpacing
the industry competition, driven by improved execution and
increased operating performance across all business units,
including the U.S., Mexico and Europe.
- Operating results from legacy European business rose by 7% on
better operational efficiencies and input cost mitigation. Newly
acquired operations already generating positive EBITDA, and on
track to achieve performance competitive with leading companies
with similar portfolio in next few years.
- We remain motivated to pursue additional growth potential and
product differentiation, aligning our strategic priorities to
continue to strengthen our differentiated global platforms.
Fourth Quarter
- Net Sales of $3.06 billion.
- Net GAAP Income of $92.1 million, including one-time asset
acquisition net gain due to valuation and acquisition
adjustments.
- Operating Income margins of 3.2% in U.S., 2.5% in Mexico and
2.1% in Europe operations, respectively.
- Adjusted EBITDA of $161.6 million (or a 5.3% margin).
Unaudited
(2) |
Thirteen Weeks Ended |
|
Fifty-Two Weeks Ended |
|
December 29, 2019 |
|
December 30, 2018 |
|
Y/Y Change |
|
December 29, 2019 |
|
December 30, 2018 |
|
Y/Y Change |
|
(In millions, except per share and
percentages) |
|
|
Net sales |
$ |
3,063.5 |
|
|
$ |
2,656.8 |
|
|
+15.3 |
% |
|
$ |
11,409.2 |
|
|
$ |
10,937.8 |
|
|
+4.3 |
% |
U.S. GAAP EPS |
$ |
0.37 |
|
|
$ |
(0.03 |
) |
|
+1,333.3 |
% |
|
$ |
1.83 |
|
|
$ |
1.00 |
|
|
+83.0 |
% |
Operating income |
$ |
85.8 |
|
|
$ |
23.6 |
|
|
+263.6 |
% |
|
$ |
690.6 |
|
|
$ |
495.7 |
|
|
+39.3 |
% |
Adjusted EBITDA(1) |
$ |
161.6 |
|
|
$ |
111.0 |
|
|
+45.6 |
% |
|
$ |
973.8 |
|
|
$ |
798.2 |
|
|
+22.0 |
% |
Adjusted EBITDA margin(1) |
5.3 |
% |
|
4.2 |
% |
|
+1.1 |
pts |
|
8.5 |
% |
|
7.3 |
% |
|
+1.2 |
pts |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Reconciliations for non-U.S. GAAP measures are provided in
subsequent sections within this release.(2) Comparisons include
Tulip from 10/15/19 forward.
“While overall global market conditions including U.S. commodity
chicken improved during 2019, our team members have continued to
deliver on our strategy, achieving a significant increase in
relative performance compared to last year and to our industry
competition. Our diverse global footprint has contributed to
well-balanced and more consistent results against different
specific market conditions. We maintain our approach to the
successful Key Customer strategy, which is the basis for our strong
growth. While our product portfolio is already differentiated, we
are investing to further innovate, and increase our capacities and
capabilities to meet customer demand. We expect value added,
specialty products to account for a meaningfully larger portion of
our total results over the next few years as we continue to
de-emphasize the mix of more volatile commodity sales and
strengthen our margin profile,” stated Jayson Penn, Chief Executive
Officer of Pilgrim's.
“In Q4, our operating performance in the U.S. has continued to
improve, driven by our partnership with Key customers and the
relentless focus on executing and delivering the best results
possible despite changes in market conditions. Within our
case-ready and small bird businesses, strong demand, especially
from QSR customers, has continued to outstrip supply. The commodity
sector has continued to be challenging but we experienced improved
market conditions compared to 2018. Our U.S. Prepared Foods
continues to evolve, reflecting the investments made over the last
few years.”
“Weak macro conditions during Q4 in Mexico contributed to
uncertainties in consumer spending and demand, especially in
traditional markets. Although volume growth was solid, prices were
below seasonal expectations. Despite the difficult market
environment in Q4, our Mexican business has continued to perform
well operationally versus the industry, and was able to generate an
improvement in results during fiscal 2019 compared to 2018.”
“Our legacy European operations once again produced continuing
improvement in results driven by increased operational
efficiencies, investments in automation, focus on higher yields,
and better mitigation of input costs. Joining our global team
during the quarter, the newly acquired operations are off to a
strong start and already generating positive EBITDA. The solid
performance was driven by strong pork exports and good domestic
demand, as well as from the initial implementations of operational
improvements.”
Conference Call Information
A conference call to discuss Pilgrim’s quarterly results will be
held tomorrow, February 21, at 7:00 a.m. MT (9 a.m. ET).
Participants are encouraged to pre-register for the conference call
using the link below. Callers who pre-register will be given
a unique PIN to gain immediate access to the call and bypass the
live operator. Participants may pre-register at any time,
including up to and after the call start time.
To pre-register, go to:
https://services.choruscall.com/links/ppc200221.html
You may also reach the pre-registration link by logging in
through the investor section of our website at www.pilgrims.com and
clicking on the link under “Upcoming Events.”
For those who would like to join the call but have not
pre-registered, access is available by dialing +1 (844) 883-3889
within the US, or +1 (412) 317-9245 internationally, and requesting
the “Pilgrim’s Pride Conference.” Please note that to submit a
question to management during the call, you must be logged in via
telephone.
Replays of the conference call will be available on Pilgrim’s
website approximately two hours after the call concludes and can be
accessed through the “Investor” section of www.pilgrims.com. The
webcast will be available for replay through May 21, 2020.
About Pilgrim’s Pride
Pilgrim’s employs approximately 58,500 people and operates
protein processing plants and prepared-foods facilities in 14
states, Puerto Rico, Mexico, the U.K, and continental Europe. The
Company’s primary distribution is through retailers and foodservice
distributors. For more information, please visit
www.pilgrims.com.
Forward-Looking Statements
Statements contained in this press release that state the
intentions, plans, hopes, beliefs, anticipations, expectations or
predictions of the future of Pilgrim’s Pride Corporation and its
management are considered forward-looking statements. It is
important to note that actual results could differ materially from
those projected in such forward-looking statements. Factors that
could cause actual results to differ materially from those
projected in such forward-looking statements include: matters
affecting the poultry industry generally; the ability to execute
the Company’s business plan to achieve desired cost savings and
profitability; future pricing for feed ingredients and the
Company’s products; outbreaks of avian influenza or other diseases,
either in Pilgrim’s Pride’s flocks or elsewhere, affecting its
ability to conduct its operations and/or demand for its poultry
products; contamination of Pilgrim’s Pride’s products, which has
previously and can in the future lead to product liability claims
and product recalls; exposure to risks related to product
liability, product recalls, property damage and injuries to
persons, for which insurance coverage is expensive, limited and
potentially inadequate; management of cash resources; restrictions
imposed by, and as a result of, Pilgrim’s Pride’s leverage; changes
in laws or regulations affecting Pilgrim’s Pride’s operations or
the application thereof; new immigration legislation or increased
enforcement efforts in connection with existing immigration
legislation that cause the costs of doing business to increase,
cause Pilgrim’s Pride to change the way in which it does business,
or otherwise disrupt its operations; competitive factors and
pricing pressures or the loss of one or more of Pilgrim’s Pride’s
largest customers; currency exchange rate fluctuations, trade
barriers, exchange controls, expropriation and other risks
associated with foreign operations; disruptions in international
markets and distribution channel, including anti-dumping
proceedings and countervailing duty proceedings; and the impact of
uncertainties of litigation as well as other risks described under
“Risk Factors” in the Company’s Annual Report on Form 10-K and
subsequent filings with the Securities and Exchange Commission.
Pilgrim’s Pride Corporation undertakes no obligation to update or
revise publicly any forward-looking statements, whether as a result
of new information, future events or otherwise.
Contact: |
Dunham Winoto |
|
Investor Relations |
|
IRPPC@pilgrims.com |
|
(970) 506-8192 |
|
www.pilgrims.com |
|
|
PILGRIM’S PRIDE CORPORATION |
CONSOLIDATED BALANCE SHEETS |
|
|
|
December 29, 2019 |
|
December 30, 2018 |
|
|
(In thousands, except share and par value
data) |
Cash and cash equivalents |
|
$ |
260,568 |
|
|
$ |
338,386 |
|
Restricted cash and cash
equivalents |
|
20,009 |
|
|
23,192 |
|
Trade accounts and other
receivables, less allowance for doubtful accounts |
|
741,281 |
|
|
561,549 |
|
Accounts receivable from
related parties |
|
944 |
|
|
1,331 |
|
Inventories |
|
1,383,535 |
|
|
1,159,519 |
|
Income taxes receivable |
|
60,204 |
|
|
38,479 |
|
Prepaid expenses and other
current assets |
|
131,695 |
|
|
112,201 |
|
Total current assets |
|
2,598,236 |
|
|
2,234,657 |
|
Deferred tax assets |
|
4,426 |
|
|
4,248 |
|
Operating lease assets,
net |
|
301,513 |
|
— |
|
— |
|
Other long-lived assets |
|
36,325 |
|
|
16,717 |
|
Identified intangible assets,
net |
|
596,053 |
|
|
564,128 |
|
Goodwill |
|
973,750 |
|
|
949,750 |
|
Property, plant and equipment,
net |
|
2,592,061 |
|
|
2,161,702 |
|
Total assets |
|
$ |
7,102,364 |
|
|
$ |
5,931,202 |
|
|
|
|
|
|
Accounts payable |
|
$ |
996,484 |
|
|
$ |
827,825 |
|
Accounts payable to related
parties |
|
3,819 |
|
|
7,269 |
|
Revenue contract
liability |
|
41,770 |
|
|
33,328 |
|
Accrued expenses and other
current liabilities |
|
572,615 |
|
|
389,175 |
|
Income taxes payable |
|
7,075 |
|
|
8,221 |
|
Current maturities of
long-term debt |
|
26,392 |
|
|
30,405 |
|
Total current liabilities |
|
1,648,155 |
|
|
1,296,223 |
|
Long-term debt, less current
maturities |
|
2,276,029 |
|
|
2,295,190 |
|
Noncurrent operating lease
liability, less current maturities |
|
235,382 |
|
|
— |
|
Noncurrent income taxes
payable |
|
7,731 |
|
|
7,731 |
|
Deferred tax liabilities |
|
301,907 |
|
|
237,422 |
|
Other long-term
liabilities |
|
97,100 |
|
|
75,051 |
|
Total liabilities |
|
4,566,304 |
|
|
3,911,617 |
|
Common stock, $.01 par value,
800,000,000 shares authorized; 261,119,064 and 260,396,032
shares issued at year-end 2019 and year-end 2018,
respectively; 249,572,119 and 248,965,081 shares outstanding
at year-end 2019 and year-end 2018, respectively |
|
2,611 |
|
|
2,604 |
|
Treasury stock, at cost,
11,546,945 shares and 11,430,951 shares at year-end 2019 and
year-end 2018, respectively |
|
(234,892 |
) |
|
(231,994 |
) |
Additional paid-in
capital |
|
1,955,261 |
|
|
1,945,136 |
|
Retained earnings |
|
877,812 |
|
|
421,888 |
|
Accumulated other
comprehensive loss |
|
(75,129 |
) |
|
(127,834 |
) |
Total Pilgrim’s Pride Corporation stockholders’ equity |
|
2,525,663 |
|
|
2,009,800 |
|
Noncontrolling interest |
|
10,397 |
|
|
9,785 |
|
Total stockholders’ equity |
|
2,536,060 |
|
|
2,019,585 |
|
Total liabilities and stockholders' equity |
|
$ |
7,102,364 |
|
|
$ |
5,931,202 |
|
|
|
|
|
|
|
|
|
|
PILGRIM’S PRIDE CORPORATION |
CONSOLIDATED AND COMBINED STATEMENTS OF
INCOME |
(Unaudited) |
|
|
|
Thirteen Weeks Ended |
|
Fifty-Two Weeks Ended |
|
|
December 29, 2019 |
|
December 30, 2018 |
|
December 29, 2019 |
|
December 30, 2018 |
|
|
(In thousands, except per share data) |
Net sales |
|
$ |
3,063,489 |
|
|
$ |
2,656,789 |
|
|
$ |
11,409,219 |
|
|
$ |
10,937,784 |
|
Cost of sales |
|
2,862,094 |
|
|
2,544,941 |
|
|
10,338,825 |
|
|
10,094,308 |
|
Gross profit |
|
201,395 |
|
|
111,848 |
|
|
1,070,394 |
|
|
843,476 |
|
Selling, general and
administrative expense |
|
115,597 |
|
|
85,629 |
|
|
379,910 |
|
|
343,025 |
|
Administrative restructuring
activities |
|
6 |
|
|
2,584 |
|
|
(84 |
) |
|
4,765 |
|
Operating income |
|
85,792 |
|
|
23,635 |
|
|
690,568 |
|
|
495,686 |
|
Interest expense, net of
capitalized interest |
|
33,446 |
|
|
36,911 |
|
|
132,630 |
|
|
162,812 |
|
Interest income |
|
(2,796 |
) |
|
(3,146 |
) |
|
(14,277 |
) |
|
(13,811 |
) |
Foreign currency transaction loss
(gain) |
|
(1,006 |
) |
|
19,962 |
|
|
6,917 |
|
|
17,160 |
|
Gain on bargain purchase |
|
(56,880 |
) |
|
— |
|
|
(56,880 |
) |
|
— |
|
Miscellaneous, net |
|
2,112 |
|
|
(921 |
) |
|
4,633 |
|
|
(2,702 |
) |
Income before income taxes |
|
110,916 |
|
|
(29,171 |
) |
|
617,545 |
|
|
332,227 |
|
Income tax expense (benefit) |
|
18,681 |
|
|
(20,944 |
) |
|
161,009 |
|
|
85,423 |
|
Net income |
|
92,235 |
|
|
(8,227 |
) |
|
456,536 |
|
|
246,804 |
|
Less: Net income (loss)
attributable to noncontrolling interests |
|
155 |
|
|
(903 |
) |
|
612 |
|
|
(1,141 |
) |
Net income (loss) attributable to Pilgrim’s
Pride Corporation |
|
$ |
92,080 |
|
|
$ |
(7,324 |
) |
|
$ |
455,924 |
|
|
$ |
247,945 |
|
|
|
|
|
|
|
|
|
|
Weighted average shares
of common stock outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
249,571 |
|
|
248,980 |
|
|
249,401 |
|
|
248,945 |
|
Effect of dilutive common stock equivalents |
|
278 |
|
|
386 |
|
|
308 |
|
|
204 |
|
Diluted |
|
249,849 |
|
|
249,366 |
|
|
249,709 |
|
|
249,149 |
|
|
|
|
|
|
|
|
|
|
Net income attributable
to Pilgrim's Pride Corporation per share of common
stock outstanding: |
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.37 |
|
|
$ |
(0.03 |
) |
|
$ |
1.83 |
|
|
$ |
1.00 |
|
Diluted |
|
$ |
0.37 |
|
|
$ |
(0.03 |
) |
|
$ |
1.83 |
|
|
$ |
1.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PILGRIM’S PRIDE CORPORATION |
CONSOLIDATED AND COMBINED STATEMENTS OF CASH
FLOWS |
|
|
|
|
Fifty-Two Weeks Ended |
|
|
December 29, 2019 |
|
December 30, 2018 |
|
|
(In thousands) |
Cash flows from operating
activities: |
|
|
|
|
Net income |
|
$ |
456,536 |
|
|
$ |
246,804 |
|
Adjustments to reconcile net
income to cash provided by operating activities: |
|
|
|
|
Depreciation and amortization |
|
287,230 |
|
|
274,088 |
|
Asset impairment |
|
— |
|
|
3,504 |
|
Gain on bargain purchase |
|
(56,880 |
) |
|
— |
|
Foreign currency transaction losses (gains) related to borrowing
arrangements |
|
(4,970 |
) |
|
5,267 |
|
Loss on early extinguishment of debt recognized as a component of
interest expense |
|
— |
|
|
15,818 |
|
Amortization of bond premium |
|
(668 |
) |
|
(668 |
) |
Accretion of bond discount |
|
982 |
|
|
812 |
|
Gain on property disposals |
|
(10,896 |
) |
|
(1,889 |
) |
Gain on equity method investments |
|
(63 |
) |
|
(63 |
) |
Share-based compensation |
|
10,132 |
|
|
13,153 |
|
Deferred income tax expense |
|
42,478 |
|
|
32,540 |
|
Changes in operating assets and liabilities: |
|
|
|
|
Trade accounts and other receivables |
|
(25,000 |
) |
|
(10,918 |
) |
Inventories |
|
(111,748 |
) |
|
83,174 |
|
Prepaid expenses and other current assets |
|
(15,490 |
) |
|
(11,612 |
) |
Accounts payable and accrued expenses |
|
119,892 |
|
|
86,834 |
|
Income taxes |
|
(26,378 |
) |
|
(248,470 |
) |
Long-term pension and other postretirement obligations |
|
(9,221 |
) |
|
(6,751 |
) |
Other |
|
5,764 |
|
|
4,458 |
|
Cash provided by operating activities |
|
666,521 |
|
|
491,650 |
|
Cash flows from investing
activities: |
|
|
|
|
Acquisitions of property, plant
and equipment |
|
(348,120 |
) |
|
(348,666 |
) |
Purchase of acquired business,
net of cash acquired |
|
(384,694 |
) |
|
— |
|
Proceeds from property
disposals |
|
15,753 |
|
|
9,775 |
|
Cash used in investing activities |
|
(717,061 |
) |
|
(338,891 |
) |
Cash flows from financing
activities: |
|
|
|
|
Proceeds from revolving line of
credit and long-term borrowings |
|
259,466 |
|
|
748,382 |
|
Payments on revolving line of
credit, long-term borrowings and capital lease obligations |
|
(289,917 |
) |
|
(1,117,009 |
) |
Proceeds (distribution) from
equity contribution under the Tax Sharing Agreement
between JBS USA Food Company Holdings and Pilgrim's Pride
Corporation |
|
(525 |
) |
|
5,558 |
|
Payment on early extinguishment
of debt |
|
— |
|
|
(9,781 |
) |
Capital contributions to
subsidiary by noncontrolling stockholders |
|
— |
|
|
1,421 |
|
Payment of capitalized loan
costs |
|
(652 |
) |
|
(12,581 |
) |
Purchase of common stock under
share repurchase program |
|
(2,898 |
) |
|
(236 |
) |
Cash used in financing activities |
|
(34,526 |
) |
|
(384,246 |
) |
Effect of exchange rate changes
on cash and cash equivalents |
|
4,065 |
|
|
3,534 |
|
Decrease in cash and cash
equivalents |
|
(81,001 |
) |
|
(227,953 |
) |
Cash and cash equivalents,
beginning of period |
|
361,578 |
|
|
589,531 |
|
Cash and cash equivalents, end of
period |
|
$ |
280,577 |
|
|
$ |
361,578 |
|
Supplemental Disclosure
Information: |
|
|
|
|
Interest paid (net of amount capitalized) |
|
$ |
130,882 |
|
|
$ |
154,627 |
|
Income taxes paid |
|
125,856 |
|
|
253,932 |
|
|
|
|
|
|
|
|
PILGRIM’S PRIDE
CORPORATIONSelected Financial
Information(Unaudited)
“EBITDA” is defined as the sum of net income
(loss) plus interest, taxes, depreciation and amortization.
“Adjusted EBITDA” is calculated by adding to EBITDA certain items
of expense and deducting from EBITDA certain items of income that
we believe are not indicative of our ongoing operating performance
consisting of: (1) income (loss) attributable to noncontrolling
interests, (2) charges or income from restructuring activities, (3)
reorganization items, (4) losses on early extinguishment of debt
and (5) foreign currency transaction losses (gains). EBITDA is
presented because it is used by management and we believe it is
frequently used by securities analysts, investors and other
interested parties, in addition to and not in lieu of results
prepared in conformity with accounting principles generally
accepted in the U.S. (“U.S. GAAP”), to compare the performance of
companies. We believe investors would be interested in our
Adjusted EBITDA because this is how our management analyzes EBITDA.
The Company also believes that Adjusted EBITDA, in combination with
the Company’s financial results calculated in accordance with U.S.
GAAP, provides investors with additional perspective regarding the
impact of certain significant items on EBITDA and facilitates a
more direct comparison of its performance with its
competitors. EBITDA and Adjusted EBITDA are not measurements
of financial performance under U.S. GAAP. They should not be
considered as an alternative to cash flow from operating activities
or as a measure of liquidity or an alternative to net income as
indicators of our operating performance or any other measures of
performance derived in accordance with U.S. GAAP.
PILGRIM'S PRIDE CORPORATION |
Reconciliation of Adjusted EBITDA |
|
|
|
|
|
(Unaudited) |
|
Thirteen Weeks Ended |
|
Fifty-Two Weeks Ended |
|
|
December 29, 2019 |
|
December 30, 2018 |
|
December 29, 2019 |
|
December 30, 2018 |
|
|
(In thousands) |
Net income (loss) |
|
$ |
92,235 |
|
|
$ |
(8,227 |
) |
|
$ |
456,536 |
|
|
$ |
246,804 |
|
Add: |
|
|
|
|
|
|
|
|
Interest expense, net |
|
30,650 |
|
|
33,765 |
|
|
118,353 |
|
|
149,001 |
|
Income tax expense (benefit) |
|
18,681 |
|
|
(20,944 |
) |
|
161,009 |
|
|
85,423 |
|
Depreciation and amortization |
|
76,849 |
|
|
66,975 |
|
|
287,230 |
|
|
274,088 |
|
EBITDA |
|
218,415 |
|
|
71,569 |
|
|
1,023,128 |
|
|
755,316 |
|
Add: |
|
|
|
|
|
|
|
|
Foreign currency transaction loss (gain) |
|
(1,006 |
) |
|
19,962 |
|
|
6,917 |
|
|
17,160 |
|
Transaction costs related to acquisitions |
|
1,239 |
|
|
— |
|
|
1,302 |
|
|
320 |
|
Restructuring activities loss (gain) |
|
6 |
|
|
2,584 |
|
|
(84 |
) |
|
4,765 |
|
Other nonrecurring losses |
|
— |
|
|
16,023 |
|
|
— |
|
|
19,485 |
|
Minus: |
|
|
|
|
|
|
|
|
Gain on bargain purchase |
|
56,880 |
|
|
— |
|
|
56,880 |
|
|
— |
|
Net income (loss) attributable to noncontrolling interest |
|
155 |
|
|
(903 |
) |
|
612 |
|
|
(1,141 |
) |
Adjusted EBITDA |
|
$ |
161,619 |
|
|
$ |
111,041 |
|
|
$ |
973,771 |
|
|
$ |
798,187 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The summary unaudited consolidated income statement data for the
twelve months ended December 29, 2019 (the LTM Period) have been
calculated by summing each of the unaudited thirteen week periods
within the audited fifty-two week period ended December 29,
2019.
PILGRIM'S PRIDE CORPORATION |
Reconciliation of LTM Adjusted EBITDA |
|
|
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
Thirteen Weeks Ended |
|
LTM Ended December 29, 2019 |
|
|
March 31, 2019 |
|
June 30, 2019 |
|
September 29, 2019 |
|
December 29, 2019 |
|
|
(In thousands) |
Net income |
|
$ |
84,125 |
|
|
$ |
170,080 |
|
|
$ |
110,096 |
|
|
$ |
92,235 |
|
|
$ |
456,536 |
|
Add: |
|
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
30,222 |
|
|
30,150 |
|
|
27,330 |
|
|
30,650 |
|
|
118,352 |
|
Income tax expense |
|
20,416 |
|
|
75,547 |
|
|
46,365 |
|
|
18,681 |
|
|
161,009 |
|
Depreciation and amortization |
|
67,182 |
|
|
71,348 |
|
|
71,851 |
|
|
76,849 |
|
|
287,230 |
|
EBITDA |
|
201,945 |
|
|
347,125 |
|
|
255,642 |
|
|
218,415 |
|
|
1,023,127 |
|
Add: |
|
|
|
|
|
|
|
|
|
|
Foreign currency transaction loss (gain) |
|
2,636 |
|
|
2,260 |
|
|
3,027 |
|
|
(1,006 |
) |
|
6,917 |
|
Transaction costs related to acquisitions |
|
— |
|
|
— |
|
|
63 |
|
|
1,239 |
|
|
1,302 |
|
Restructuring activities loss (gain) |
|
(27 |
) |
|
(43 |
) |
|
(20 |
) |
|
6 |
|
|
(84 |
) |
Minus: |
|
|
|
|
|
|
|
|
|
|
Gain on bargain purchase |
|
— |
|
|
— |
|
|
— |
|
|
56,880 |
|
|
56,880 |
|
Net income attributable to noncontrolling interest |
|
114 |
|
|
12 |
|
|
331 |
|
|
155 |
|
|
612 |
|
Adjusted EBITDA |
|
$ |
204,440 |
|
|
$ |
349,330 |
|
|
$ |
258,381 |
|
|
$ |
161,619 |
|
|
$ |
973,770 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PILGRIM'S PRIDE CORPORATION |
Reconciliation of EBITDA Margin |
|
(Unaudited) |
|
Thirteen Weeks Ended |
|
Fifty-Two Weeks Ended |
|
Thirteen Weeks Ended |
|
Fifty-Two Weeks Ended |
|
|
Dec 29, 2019 |
|
Dec 30, 2018 |
|
Dec 29, 2019 |
|
Dec 30, 2018 |
|
Dec 29, 2019 |
|
Dec 30, 2018 |
|
Dec 29, 2019 |
|
Dec 30, 2018 |
|
(In thousands, except percent of net sales) |
Net income (loss) |
|
$ |
92,235 |
|
|
$ |
(8,227 |
) |
|
$ |
456,536 |
|
|
$ |
246,804 |
|
|
3.01 |
% |
|
(0.31 |
)% |
|
4.00 |
% |
|
2.26 |
% |
Add: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
30,650 |
|
|
33,765 |
|
|
118,353 |
|
|
149,001 |
|
|
1.00 |
% |
|
1.27 |
% |
|
1.04 |
% |
|
1.36 |
% |
Income tax expense (benefit) |
|
18,681 |
|
|
(20,944 |
) |
|
161,009 |
|
|
85,423 |
|
|
0.61 |
% |
|
(0.79 |
)% |
|
1.41 |
% |
|
0.78 |
% |
Depreciation and amortization |
|
76,849 |
|
|
66,975 |
|
|
287,230 |
|
|
274,088 |
|
|
2.51 |
% |
|
2.52 |
% |
|
2.52 |
% |
|
2.51 |
% |
EBITDA |
|
218,415 |
|
|
71,569 |
|
|
1,023,128 |
|
|
755,316 |
|
|
7.13 |
% |
|
2.69 |
% |
|
8.97 |
% |
|
6.91 |
% |
Add: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency transaction loss (gain) |
|
(1,006 |
) |
|
19,962 |
|
|
6,917 |
|
|
17,160 |
|
|
(0.03 |
)% |
|
0.75 |
% |
|
0.06 |
% |
|
0.16 |
% |
Transaction costs related to acquisitions |
|
1,239 |
|
|
— |
|
|
1,302 |
|
|
320 |
|
|
0.04 |
% |
|
— |
% |
|
0.01 |
% |
|
— |
% |
Restructuring activities loss (gain) |
|
6 |
|
|
2,584 |
|
|
(84 |
) |
|
4,765 |
|
|
— |
% |
|
0.10 |
% |
|
— |
% |
|
0.04 |
% |
Other nonrecurring losses |
|
— |
|
|
16,023 |
|
|
— |
|
|
19,485 |
|
|
— |
% |
|
0.60 |
% |
|
— |
% |
|
0.18 |
% |
Minus: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on bargain purchase |
|
56,880 |
|
|
— |
|
|
56,880 |
|
|
— |
|
|
1.86 |
% |
|
— |
% |
|
0.50 |
% |
|
— |
% |
Net income (loss) attributable to noncontrolling interest |
|
155 |
|
|
(903 |
) |
|
612 |
|
|
(1,141 |
) |
|
0.01 |
% |
|
(0.03 |
)% |
|
0.01 |
% |
|
(0.01 |
)% |
Adjusted EBITDA |
|
$ |
161,619 |
|
|
$ |
111,041 |
|
|
$ |
973,771 |
|
|
$ |
798,187 |
|
|
5.28 |
% |
|
4.18 |
% |
|
8.53 |
% |
|
7.30 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales |
|
$ |
3,063,489 |
|
|
$ |
2,656,789 |
|
|
$ |
11,409,219 |
|
|
$ |
10,937,784 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A reconciliation of net income (loss) attributable to Pilgrim's
Pride Corporation (“Pilgrim's”) per common diluted share to
adjusted net income (loss) attributable to Pilgrim's per common
diluted share is as follows:
PILGRIM'S PRIDE CORPORATION |
Reconciliation of Adjusted Net Income |
(Unaudited) |
|
|
|
|
|
|
|
|
|
Thirteen Weeks Ended |
|
Fifty-Two Weeks Ended |
|
December 29, 2019 |
|
December 30, 2018 |
|
December 29, 2019 |
|
December 30, 2018 |
|
(In thousands, except per share data) |
Net income (loss) attributable to Pilgrim's |
$ |
92,080 |
|
|
$ |
(7,324 |
) |
|
$ |
455,924 |
|
|
$ |
247,945 |
|
Adjustments, net of tax: |
|
|
|
|
|
|
|
Loss on early extinguishment of debt |
— |
|
|
— |
|
|
— |
|
|
12,449 |
|
Transaction costs related to acquisitions and restructuring
activities net loss |
920 |
|
|
1,919 |
|
|
900 |
|
|
3,778 |
|
Other nonrecurring losses |
— |
|
|
11,903 |
|
|
— |
|
|
14,475 |
|
Foreign currency transaction loss (gain) |
(744 |
) |
|
14,829 |
|
|
5,113 |
|
|
12,748 |
|
Gain on bargain purchase |
(56,880 |
) |
|
— |
|
|
(56,880 |
) |
|
— |
|
|
$ |
35,376 |
|
|
$ |
21,327 |
|
|
$ |
405,057 |
|
|
$ |
291,395 |
|
U.S. Tax Cuts & Jobs Act
transition tax |
— |
|
|
— |
|
|
— |
|
|
26,400 |
|
Adjusted net income
attributable to Pilgrim's |
$ |
35,376 |
|
|
$ |
21,327 |
|
|
$ |
405,057 |
|
|
$ |
317,795 |
|
Weighted average diluted
shares of common stock outstanding |
249,849 |
|
|
249,366 |
|
|
249,709 |
|
|
249,149 |
|
Adjusted net income
attributable to Pilgrim's per common diluted share |
$ |
0.14 |
|
|
$ |
0.09 |
|
|
$ |
1.62 |
|
|
$ |
1.28 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
A reconciliation of U.S. GAAP to non-U.S. GAAP
financial measures. Net income (loss) per share is calculated by
dividing the net income (loss) attributable to Pilgrim's Pride
Corporation stockholders by the weighted average number of diluted
shares.
PILGRIM'S PRIDE CORPORATION |
Reconciliation of GAAP EPS to Adjusted EPS |
(Unaudited) |
|
|
|
|
|
|
|
|
|
Thirteen Weeks Ended |
|
Fifty-Two Weeks Ended |
|
December 29, 2019 |
|
December 30, 2018 |
|
December 29, 2019 |
|
December 30, 2018 |
|
(In thousands, except per share data) |
U.S. GAAP EPS |
$ |
0.37 |
|
|
$ |
(0.03 |
) |
|
$ |
1.83 |
|
|
$ |
1.00 |
|
Adjustments, net of tax: |
|
|
|
|
|
|
|
Loss on early extinguishment of debt |
— |
|
|
— |
|
|
— |
|
|
0.05 |
|
Transaction costs related to acquisitions and
restructuring activities loss (gain) |
— |
|
|
0.01 |
|
|
— |
|
|
0.02 |
|
Other nonrecurring losses |
— |
|
|
0.05 |
|
|
— |
|
|
0.05 |
|
Foreign currency transaction loss (gain) |
— |
|
|
0.06 |
|
|
0.02 |
|
|
0.05 |
|
Gain on bargain purchase |
(0.23 |
) |
|
— |
|
|
(0.23 |
) |
|
— |
|
|
0.14 |
|
|
0.09 |
|
|
1.62 |
|
|
1.17 |
|
U.S. Tax Cuts & Jobs Act
transition tax |
— |
|
|
— |
|
|
— |
|
|
0.11 |
|
Adjusted EPS |
$ |
0.14 |
|
|
$ |
0.09 |
|
|
$ |
1.62 |
|
|
$ |
1.28 |
|
|
|
|
|
|
|
|
|
Weighted average diluted
shares of common stock outstanding |
249,849 |
|
|
249,366 |
|
|
249,709 |
|
|
249,149 |
|
|
|
|
|
|
|
|
|
|
|
|
|
PILGRIM'S PRIDE CORPORATION |
Supplementary Geographic Data |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Thirteen Weeks Ended |
|
Fifty-Two Weeks Ended |
|
|
December 29, 2019 |
|
December 30, 2018 |
|
December 29, 2019 |
|
December 30, 2018 |
|
|
(In thousands) |
Sources of net sales by
geographic region of origin: |
|
|
|
|
|
|
|
|
U.S. |
|
$ |
1,904,515 |
|
|
$ |
1,820,952 |
|
|
$ |
7,636,716 |
|
|
$ |
7,425,661 |
|
Europe |
|
815,397 |
|
|
514,541 |
|
|
2,383,793 |
|
|
2,148,666 |
|
Mexico |
|
343,577 |
|
|
321,296 |
|
|
1,388,710 |
|
|
1,363,457 |
|
Total net sales |
|
$ |
3,063,489 |
|
|
$ |
2,656,789 |
|
|
$ |
11,409,219 |
|
|
$ |
10,937,784 |
|
|
|
|
|
|
|
|
|
|
Sources of cost of sales by
geographic region of origin: |
|
|
|
|
|
|
|
|
U.S. |
|
$ |
1,779,959 |
|
|
$ |
1,772,730 |
|
|
$ |
6,903,237 |
|
|
$ |
6,909,779 |
|
Europe |
|
759,788 |
|
|
476,844 |
|
|
2,212,042 |
|
|
1,977,838 |
|
Mexico |
|
322,371 |
|
|
295,465 |
|
|
1,223,642 |
|
|
1,206,823 |
|
Elimination |
|
(24 |
) |
|
(98 |
) |
|
(96 |
) |
|
(132 |
) |
Total cost of sales |
|
$ |
2,862,094 |
|
|
$ |
2,544,941 |
|
|
$ |
10,338,825 |
|
|
$ |
10,094,308 |
|
|
|
|
|
|
|
|
|
|
Sources of gross profit by
geographic region of origin: |
|
|
|
|
|
|
|
|
U.S. |
|
$ |
124,556 |
|
|
$ |
48,222 |
|
|
$ |
733,479 |
|
|
$ |
515,882 |
|
Europe |
|
55,609 |
|
|
37,697 |
|
|
171,751 |
|
|
170,828 |
|
Mexico |
|
21,206 |
|
|
25,831 |
|
|
165,068 |
|
|
156,634 |
|
Elimination |
|
24 |
|
|
98 |
|
|
96 |
|
|
132 |
|
Total gross profit |
|
$ |
201,395 |
|
|
$ |
111,848 |
|
|
$ |
1,070,394 |
|
|
$ |
843,476 |
|
|
|
|
|
|
|
|
|
|
Sources of operating income by
geographic region of origin: |
|
|
|
|
|
|
|
|
U.S. |
|
$ |
60,307 |
|
|
$ |
(9,579 |
) |
|
$ |
487,275 |
|
|
$ |
291,381 |
|
Europe |
|
16,949 |
|
|
15,979 |
|
|
79,182 |
|
|
84,524 |
|
Mexico |
|
8,512 |
|
|
17,137 |
|
|
124,015 |
|
|
119,649 |
|
Elimination |
|
24 |
|
|
98 |
|
|
96 |
|
|
132 |
|
Total operating income |
|
$ |
85,792 |
|
|
$ |
23,635 |
|
|
$ |
690,568 |
|
|
$ |
495,686 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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