Delaware | 001-14704 | 71-0225165 | ||
(State or other jurisdiction of incorporation or organization) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||
2200 West Don Tyson Parkway, Springdale, Arkansas | 72762-6999 | |||
(Address of principal executive offices) | (Zip Code) | |||
(479) 290-4000 | ||||
(Registrant’s telephone number, including area code) |
Title of Each Class | Trading Symbol | Name of Each Exchange on Which Registered | |
Class A Common Stock | Par Value $0.10 | TSN | New York Stock Exchange |
(d) | Exhibits |
TYSON FOODS, INC. | |||
Date: May 6, 2019 | By: | /s/ Stewart Glendinning | |
Name: | Stewart Glendinning | ||
Title: | Executive Vice President and Chief Financial Officer | ||
(in millions, except per share data) | Second Quarter | Six Months Ended | |||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Sales | $ | 10,443 | $ | 9,773 | $ | 20,636 | $ | 20,002 | |||||||
Operating Income | 635 | 494 | 1,442 | 1,416 | |||||||||||
Net Income | 430 | 316 | 982 | 1,948 | |||||||||||
Less: Net Income Attributable to Noncontrolling Interests | 4 | 1 | 5 | 2 | |||||||||||
Net Income Attributable to Tyson | $ | 426 | $ | 315 | $ | 977 | $ | 1,946 | |||||||
Net Income Per Share Attributable to Tyson | $ | 1.17 | $ | 0.85 | $ | 2.67 | $ | 5.25 | |||||||
Adjusted¹ Operating Income | $ | 654 | $ | 691 | $ | 1,495 | $ | 1,635 | |||||||
Adjusted¹ Net Income Per Share Attributable to Tyson | $ | 1.20 | $ | 1.27 | $ | 2.78 | $ | 3.08 |
• | GAAP EPS of $2.67, down 49% from record prior year (prior year included a one-time tax benefit of $2.71) |
• | Adjusted EPS of $2.78, down 10% from record prior year |
• | GAAP operating income of $1,442 million; Adjusted operating income of $1,495 million |
• | Total Company GAAP operating margin of 7.0%; Adjusted operating margin of 7.2% |
• | Record Prepared Foods GAAP operating margin of 12.2% and record Adjusted operating margin of 12.4% |
• | Repurchased 2.4 million shares for $146 million |
• | GAAP EPS of $1.17, up 38% from prior year; Adjusted EPS of $1.20, down 6% from prior year |
• | GAAP operating income of $635 million; Adjusted operating income of $654 million |
• | Total Company GAAP operating margin of 6.1%; Adjusted operating margin of 6.3% |
• | Record second quarter Prepared Foods GAAP operating margin and income of 12.1% and $245 million; record second quarter Adjusted operating margin and income of 12.3% and $249 million |
• | Record second quarter Beef GAAP and Adjusted operating income of $156 million |
• | Maintaining Adjusted1 EPS guidance for fiscal 2019 of $5.75-$6.10 |
Sales | ||||||||||||||||||||
(for the second quarter ended March 30, 2019, and March 31, 2018) | ||||||||||||||||||||
Second Quarter | Six Months Ended | |||||||||||||||||||
Volume | Avg. Price | Volume | Avg. Price | |||||||||||||||||
2019 | 2018 | Change | Change | 2019 | 2018 | Change | Change | |||||||||||||
Beef | $ | 3,884 | $ | 3,681 | 3.2 | % | 2.3 | % | $ | 7,810 | $ | 7,567 | 1.1 | % | 2.1 | % | ||||
Pork | 1,172 | 1,265 | 1.0 | % | (8.3 | )% | 2,351 | 2,548 | (1.3 | )% | (6.4 | )% | ||||||||
Chicken | 3,407 | 2,959 | 26.2 | % | (11.0 | )% | 6,522 | 5,956 | 21.6 | % | (12.1 | )% | ||||||||
Prepared Foods | 2,027 | 2,147 | (9.5 | )% | 3.9 | % | 4,176 | 4,439 | (11.3 | )% | 5.4 | % | ||||||||
Other | 277 | 82 | 93.4 | % | 141.2 | % | 420 | 170 | 47.5 | % | 99.4 | % | ||||||||
Intersegment Sales | (324 | ) | (361 | ) | n/a | n/a | (643 | ) | (678 | ) | n/a | n/a | ||||||||
Total | $ | 10,443 | $ | 9,773 | 11.6 | % | (4.8 | )% | $ | 20,636 | $ | 20,002 | 7.4 | % | (4.2 | )% |
Operating Income (Loss) | ||||||||||||||||||||
(for the second quarter ended March 30, 2019, and March 31, 2018) | ||||||||||||||||||||
Second Quarter | Six Months Ended | |||||||||||||||||||
Operating Margin | Operating Margin | |||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | |||||||||||||
Beef | $ | 156 | $ | 92 | 4.0 | % | 2.5 | % | $ | 461 | $ | 348 | 5.9 | % | 4.6 | % | ||||
Pork | 100 | 67 | 8.5 | % | 5.3 | % | 195 | 218 | 8.3 | % | 8.6 | % | ||||||||
Chicken | 141 | 231 | 4.1 | % | 7.8 | % | 301 | 503 | 4.6 | % | 8.4 | % | ||||||||
Prepared Foods | 245 | 119 | 12.1 | % | 5.5 | % | 510 | 375 | 12.2 | % | 8.4 | % | ||||||||
Other | (7 | ) | (15 | ) | n/a | n/a | (25 | ) | (28 | ) | n/a | n/a | ||||||||
Total | $ | 635 | $ | 494 | 6.1 | % | 5.1 | % | $ | 1,442 | $ | 1,416 | 7.0 | % | 7.1 | % |
Adjusted Operating Income (Loss) (Non-GAAP) | ||||||||||||||||||||
(for the second quarter ended March 30, 2019, and March 31, 2018) | ||||||||||||||||||||
Second Quarter | Six Months Ended | |||||||||||||||||||
Adjusted Operating Margin (Non-GAAP) | Adjusted Operating Margin (Non-GAAP) | |||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | |||||||||||||
Beef | $ | 156 | $ | 120 | 4.0 | % | 3.3 | % | $ | 461 | $ | 377 | 5.9 | % | 5.0 | % | ||||
Pork | 100 | 79 | 8.5 | % | 6.2 | % | 195 | 231 | 8.3 | % | 9.1 | % | ||||||||
Chicken | 150 | 288 | 4.4 | % | 9.7 | % | 323 | 569 | 5.0 | % | 9.6 | % | ||||||||
Prepared Foods | 249 | 218 | 12.3 | % | 10.3 | % | 517 | 486 | 12.4 | % | 11.2 | % | ||||||||
Other | (1 | ) | (15 | ) | n/a | n/a | (1 | ) | (28 | ) | n/a | n/a | ||||||||
Total | $ | 654 | $ | 690 | 6.3 | % | 7.1 | % | $ | 1,495 | $ | 1,635 | 7.2 | % | 8.2 | % |
• | Beef - Sales volume increased for the six months and second quarter of fiscal 2019 due to improved availability of cattle supply and stronger demand for our beef products. Average sales price increased for the six months and second quarter of fiscal 2019 as demand for our beef products remained strong. Operating income increased for the six months and second quarter of fiscal 2019 as we continued to maximize our revenues relative to live fed cattle costs, partially offset by increased operating and labor costs. Additionally, operating income was impacted in the second quarter of fiscal 2018 by a one-time cash bonus to frontline employees of $27 million. |
• | Pork - Sales volume increased for the second quarter of fiscal 2019 due to increased domestic availability of live hogs. Sales volume decreased for the six months of fiscal 2019 as a result of balancing our supply with customer demand during a period of margin compression in the first quarter of fiscal 2019, partially offset by the increased sales volume in the second quarter of fiscal 2019. The average sales price decrease for the six months and second quarter of fiscal 2019 was associated with lower livestock costs. Operating income increased for the second quarter of fiscal 2019 as we maximized our revenues relative to the live hog markets due to operational and mix performance. Operating income for the six months of fiscal 2019 remained strong, but lower than prior year results due to periods of compressed pork margins caused by excess domestic availability of pork in the first quarter of fiscal 2019. Additionally, operating income was impacted in the second quarter of fiscal 2018 by a one-time cash bonus to frontline employees of $12 million. |
• | Chicken - Sales volume increased for the six months and second quarter of fiscal 2019 primarily due to incremental volume from business acquisitions. Average sales price decreased for the six months and second quarter of fiscal 2019 due to sales mix primarily associated with the acquisition of a poultry rendering and blending business in the fourth quarter of fiscal 2018. Operating income decreased for the six months and second quarter of fiscal 2019 due to increased operating costs, in addition to higher feed ingredient costs and current market conditions. Additionally, operating income was impacted in the second quarter of fiscal 2018 by a one-time cash bonus to frontline employees of $51 million. |
• | Prepared Foods - Sales volume decreased for the six months and second quarter of fiscal 2019 primarily from business divestitures. Average sales price increased for the six months and second quarter of fiscal 2019 due to product mix which was positively impacted by business divestitures. Operating income increased for the six months and second quarter of fiscal 2019 due to strong demand for our products, improved product mix and lower raw material costs, partially offset by increased operating and labor costs. Additionally, operating income was impacted in the second quarter of fiscal 2018 by a one-time cash bonus to frontline employees of $19 million and a $75 million impairment associated with the divestiture of non-protein business. |
• | Keystone Acquisition – On November 30, 2018, we completed the acquisition of Keystone Foods business ("Keystone”) from Marfrig Global Foods for $2.3 billion in cash, subject to certain adjustments. The acquisition of Keystone, a major supplier to the growing global foodservice industry, is our latest investment in furtherance of our growth strategy and expansion of our value-added protein capabilities. The results from domestic operations of this business are included in our Chicken segment and results from its international operations are included in Other. |
• | Thai and European Operations Acquisition – On February 6, 2019, the Company announced it had reached a definitive agreement to acquire the Thai and European operations of BRF S.A. for $340 million in cash, subject to certain adjustments. The purchase includes four processing facilities located in Thailand and one processing facility each located in the United Kingdom and the Netherlands. This acquisition builds on our growth strategy to expand offerings of value-added protein in global markets. The transaction is expected to close during our fiscal third quarter 2019 and is subject to customary closing conditions, including regulatory approvals, however, there can be no assurance that the acquisition will close at such time. The impact of this acquisition has been excluded from the outlook. |
• | Sales – For fiscal 2019, we expect sales to grow to approximately $43 billion due to volume growth and mix, as well as the impact of the Keystone acquisition. Most of the sales growth is expected to occur in our Chicken segment and Other, as well as expected growth in our Prepared Foods segment after excluding the impact of fiscal 2018 business divestitures. |
• | Beef – We expect industry fed cattle supplies to increase approximately 2% in fiscal 2019 as compared to fiscal 2018. We expect ample supplies in regions where we operate our plants. We believe our Beef segment's adjusted operating margin will be approximately 7% in fiscal 2019. |
• | Pork – We expect industry hog supplies to increase approximately 2-3% in fiscal 2019 as compared to fiscal 2018. Additionally, we expect a sharp increase in livestock costs in the back half fiscal 2019, however, there may be periods in which costs rise faster than price recovery. We believe our Pork segment's adjusted operating margin should exceed 6% in fiscal 2019. |
• | Chicken – USDA projects an increase in chicken production of approximately 1% in fiscal 2019 as compared to fiscal 2018. We believe our Chicken segment's adjusted operating margin to be around 6% in fiscal 2019. |
• | Prepared Foods – We expect raw material costs to rise in the back half of fiscal 2019 but expect to recover the increased raw material costs through pricing. Many of our sales contracts are formula based or shorter-term in nature, but there may be a lag time for price changes to take effect. We believe our Prepared Foods segment's adjusted operating margin will be between 10-12% in fiscal 2019. |
• | Other – Other includes Keystone's international operations, our foreign operations in China, third-party merger and integration costs and corporate overhead related to Tyson New Ventures, LLC. We expect improved results in Other during fiscal 2019 from substantial improvement in our legacy foreign operations as well as from the addition of Keystone's international operations. |
• | Capital Expenditures – For fiscal 2019, we expect capital expenditures to be approximately $1.3 to $1.4 billion and to scale back to the range of $1.1 to $1.3 billion in fiscal 2020. Capital expenditures will include spending for production growth, safety, animal well-being, infrastructure replacements and upgrades, and operational improvements that will result in production and labor efficiencies, yield improvements and sales channel flexibility. |
• | Net Interest Expense – We expect net interest expense to approximate $450 million for fiscal 2019. |
• | Liquidity – We expect total liquidity, which was approximately $1.9 billion at March 30, 2019, to remain above our minimum liquidity target of $1.0 billion. |
• | Tax Rate – We expect our adjusted effective tax rate to approximate 22.5% in fiscal 2019. |
Three Months Ended | Six Months Ended | ||||||||||||||
March 30, 2019 | March 31, 2018 | March 30, 2019 | March 31, 2018 | ||||||||||||
Sales | $ | 10,443 | $ | 9,773 | $ | 20,636 | $ | 20,002 | |||||||
Cost of Sales | 9,251 | 8,758 | 18,089 | 17,544 | |||||||||||
Gross Profit | 1,192 | 1,015 | 2,547 | 2,458 | |||||||||||
Selling, General and Administrative | 557 | 521 | 1,105 | 1,042 | |||||||||||
Operating Income | 635 | 494 | 1,442 | 1,416 | |||||||||||
Other (Income) Expense: | |||||||||||||||
Interest income | (5 | ) | (2 | ) | (7 | ) | (4 | ) | |||||||
Interest expense | 119 | 86 | 218 | 174 | |||||||||||
Other, net | (7 | ) | (13 | ) | (10 | ) | (19 | ) | |||||||
Total Other (Income) Expense | 107 | 71 | 201 | 151 | |||||||||||
Income before Income Taxes | 528 | 423 | 1,241 | 1,265 | |||||||||||
Income Tax Expense (Benefit) | 98 | 107 | 259 | (683 | ) | ||||||||||
Net Income | 430 | 316 | 982 | 1,948 | |||||||||||
Less: Net Income Attributable to Noncontrolling Interests | 4 | 1 | 5 | 2 | |||||||||||
Net Income Attributable to Tyson | $ | 426 | $ | 315 | $ | 977 | $ | 1,946 | |||||||
Weighted Average Shares Outstanding: | |||||||||||||||
Class A Basic | 294 | 296 | 294 | 296 | |||||||||||
Class B Basic | 70 | 70 | 70 | 70 | |||||||||||
Diluted | 366 | 370 | 366 | 371 | |||||||||||
Net Income Per Share Attributable to Tyson: | |||||||||||||||
Class A Basic | $ | 1.20 | $ | 0.88 | $ | 2.74 | $ | 5.42 | |||||||
Class B Basic | $ | 1.07 | $ | 0.78 | $ | 2.46 | $ | 4.87 | |||||||
Diluted | $ | 1.17 | $ | 0.85 | $ | 2.67 | $ | 5.25 | |||||||
Dividends Declared Per Share: | |||||||||||||||
Class A | $ | 0.375 | $ | 0.300 | $ | 0.825 | $ | 0.675 | |||||||
Class B | $ | 0.338 | $ | 0.270 | $ | 0.743 | $ | 0.608 | |||||||
Sales Growth | 6.9 | % | 3.2 | % | |||||||||||
Margins: (Percent of Sales) | |||||||||||||||
Gross Profit | 11.4 | % | 10.4 | % | 12.3 | % | 12.3 | % | |||||||
Operating Income | 6.1 | % | 5.1 | % | 7.0 | % | 7.1 | % | |||||||
Net Income Attributable to Tyson | 4.1 | % | 3.2 | % | 4.8 | % | 9.7 | % | |||||||
Effective Tax Rate | 18.5 | % | 25.3 | % | 20.9 | % | (54.0 | )% |
March 30, 2019 | September 29, 2018 | ||||||
Assets | |||||||
Current Assets: | |||||||
Cash and cash equivalents | $ | 360 | $ | 270 | |||
Accounts receivable, net | 1,837 | 1,723 | |||||
Inventories | 3,899 | 3,513 | |||||
Other current assets | 280 | 182 | |||||
Total Current Assets | 6,376 | 5,688 | |||||
Net Property, Plant and Equipment | 7,085 | 6,169 | |||||
Goodwill | 10,946 | 9,739 | |||||
Intangible Assets, net | 7,295 | 6,759 | |||||
Other Assets | 796 | 754 | |||||
Total Assets | $ | 32,498 | $ | 29,109 | |||
Liabilities and Shareholders’ Equity | |||||||
Current Liabilities: | |||||||
Current debt | $ | 1,564 | $ | 1,911 | |||
Accounts payable | 1,710 | 1,694 | |||||
Other current liabilities | 1,340 | 1,426 | |||||
Total Current Liabilities | 4,614 | 5,031 | |||||
Long-Term Debt | 10,810 | 7,962 | |||||
Deferred Income Taxes | 2,278 | 2,107 | |||||
Other Liabilities | 1,238 | 1,198 | |||||
Total Tyson Shareholders’ Equity | 13,423 | 12,803 | |||||
Noncontrolling Interests | 135 | 8 | |||||
Total Shareholders’ Equity | 13,558 | 12,811 | |||||
Total Liabilities and Shareholders’ Equity | $ | 32,498 | $ | 29,109 |
Six Months Ended | |||||||
March 30, 2019 | March 31, 2018 | ||||||
Cash Flows From Operating Activities: | |||||||
Net income | $ | 982 | $ | 1,948 | |||
Depreciation and amortization | 523 | 459 | |||||
Deferred income taxes | 4 | (938 | ) | ||||
Other, net | 69 | 132 | |||||
Net changes in operating assets and liabilities | (639 | ) | (462 | ) | |||
Cash Provided by Operating Activities | 939 | 1,139 | |||||
Cash Flows From Investing Activities: | |||||||
Additions to property, plant and equipment | (656 | ) | (559 | ) | |||
Purchases of marketable securities | (30 | ) | (22 | ) | |||
Proceeds from sale of marketable securities | 29 | 21 | |||||
Acquisitions, net of cash acquired | (2,141 | ) | (226 | ) | |||
Proceeds from sale of business | — | 125 | |||||
Other, net | 32 | (25 | ) | ||||
Cash Used for Investing Activities | (2,766 | ) | (686 | ) | |||
Cash Flows From Financing Activities: | |||||||
Proceeds from issuance of debt | 4,600 | — | |||||
Payments on debt | (1,849 | ) | (432 | ) | |||
Borrowings on revolving credit facility | 335 | 1,420 | |||||
Payments on revolving credit facility | (335 | ) | (1,420 | ) | |||
Proceeds from issuance of commercial paper | 10,145 | 10,837 | |||||
Repayments of commercial paper | (10,567 | ) | (10,615 | ) | |||
Purchases of Tyson Class A common stock | (146 | ) | (237 | ) | |||
Dividends | (269 | ) | (216 | ) | |||
Stock options exercised | 24 | 87 | |||||
Other, net | (26 | ) | — | ||||
Cash Provided by (Used for) Financing Activities | 1,912 | (576 | ) | ||||
Effect of Exchange Rate Changes on Cash | 5 | 3 | |||||
Increase (Decrease) in Cash and Cash Equivalents | 90 | (120 | ) | ||||
Cash and Cash Equivalents at Beginning of Year | 270 | 318 | |||||
Cash and Cash Equivalents at End of Period | $ | 360 | $ | 198 |
Six Months Ended | Fiscal Year Ended | Twelve Months Ended | ||||||||||||
March 30, 2019 | March 31, 2018 | September 29, 2018 | March 30, 2019 | |||||||||||
Net income | $ | 982 | $ | 1,948 | $ | 3,027 | $ | 2,061 | ||||||
Less: Interest income | (7 | ) | (4 | ) | (7 | ) | (10 | ) | ||||||
Add: Interest expense | 218 | 174 | 350 | 394 | ||||||||||
Add: Income tax expense (benefit) | 259 | (683 | ) | (282 | ) | 660 | ||||||||
Add: Depreciation | 386 | 353 | 723 | 756 | ||||||||||
Add: Amortization (a) | 131 | 101 | 210 | 240 | ||||||||||
EBITDA | $ | 1,969 | $ | 1,889 | $ | 4,021 | $ | 4,101 | ||||||
Adjustments to EBITDA: | ||||||||||||||
Add: One-time cash bonus to frontline employees | $ | — | $ | 109 | $ | 109 | $ | — | ||||||
Add: Keystone purchase accounting and acquisition related costs (b) | 37 | — | — | 37 | ||||||||||
Add: Impairments net of realized gain associated with the divestiture of non-protein businesses (c) | — | 79 | 68 | (11 | ) | |||||||||
Add: Restructuring and related charges | 16 | 31 | 59 | 44 | ||||||||||
Total Adjusted EBITDA | $ | 2,022 | $ | 2,108 | $ | 4,257 | $ | 4,171 | ||||||
Total gross debt | $ | 9,873 | $ | 12,374 | ||||||||||
Less: Cash and cash equivalents | (270 | ) | (360 | ) | ||||||||||
Less: Short-term investments | (1 | ) | (2 | ) | ||||||||||
Total net debt | $ | 9,602 | $ | 12,012 | ||||||||||
Ratio Calculations: | ||||||||||||||
Gross debt/EBITDA | 2.5x | 3.0x | ||||||||||||
Net debt/EBITDA | 2.4x | 2.9x | ||||||||||||
Gross debt/Adjusted EBITDA | 2.3x | 3.0x | ||||||||||||
Net debt/Adjusted EBITDA | 2.3x | 2.9x |
(a) | Excludes the amortization of debt issuance and debt discount expense of $6 million and $5 million for the six months ended March 30, 2019, and March 31, 2018, respectively, $10 million for the fiscal year ended September 29, 2018, and $11 million for the twelve months ended March 30, 2019, as it is included in interest expense. |
(b) | Keystone acquisition and integration costs for the fiscal year 2019 included $11 million of purchase accounting adjustments and $26 million acquisition related costs. |
(c) | The fiscal year ended September 29, 2018 included $101 million of impairments net of $33 million realized gains associated with the divestitures of non-protein businesses. The adjustment for the six months ended March 31, 2018 included $101 million of impairments related to the expected sale of a non-protein business net of a $22 million realized gain associated with the sale of a non-protein business. |
Second Quarter | Six Months Ended | ||||||||||||||||||||||||||||||
Pretax Impact | EPS Impact | Pretax Impact | EPS Impact | ||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2019 | 2018 | 2019 | 2018 | ||||||||||||||||||||||||
Reported net income per share attributable to Tyson | $ | 1.17 | $ | 0.85 | $ | 2.67 | $ | 5.25 | |||||||||||||||||||||||
Add: One-time cash bonus to frontline employees | $ | — | $ | 109 | — | 0.22 | $ | — | $ | 109 | — | 0.22 | |||||||||||||||||||
Add: Restructuring and related charges | $ | 8 | $ | 12 | 0.01 | 0.02 | $ | 16 | $ | 31 | 0.03 | 0.06 | |||||||||||||||||||
Add: Impairment net of a realized gain associated with the divestiture of non-protein businesses (a) | $ | — | $ | 75 | — | 0.21 | $ | — | $ | 79 | — | 0.26 | |||||||||||||||||||
Add: Keystone purchase accounting and acquisition related costs (b) | $ | 11 | $ | — | 0.02 | — | $ | 37 | $ | — | 0.08 | — | |||||||||||||||||||
Less: Tax benefit from remeasurement of net deferred tax liabilities at lower enacted tax rates | $ | — | $ | — | — | (0.03 | ) | $ | — | $ | — | — | (2.71 | ) | |||||||||||||||||
Adjusted net income per share attributable to Tyson | $ | 1.20 | $ | 1.27 | $ | 2.78 | $ | 3.08 |
(a) | EPS impact for the six months of fiscal 2018 included $101 million of impairments related to the expected sale of a non-protein business net of a $22 million realized gain associated with the sale of a non-protein business, which combined on an after-tax basis resulted in a $0.26 impact to EPS. |
(b) | Keystone purchase accounting and acquisition related costs for the six months of fiscal 2019 included an $11 million purchase accounting adjustment for the fair value step-up of inventory and $26 million of acquisition related costs. |
Adjusted Operating Income (Loss) | ||||||||||||||||||
(for the second quarter ended March 30, 2019) | ||||||||||||||||||
Beef | Pork | Chicken | Prepared Foods | Other | Total | |||||||||||||
Reported operating income (loss) | $ | 156 | $ | 100 | $ | 141 | $ | 245 | $ | (7 | ) | $ | 635 | |||||
Add: Restructuring and related charges | — | — | 4 | 4 | — | 8 | ||||||||||||
Add: Keystone purchase accounting and acquisition related costs | — | — | 5 | — | 6 | 11 | ||||||||||||
Adjusted operating income (loss) | $ | 156 | $ | 100 | $ | 150 | $ | 249 | $ | (1 | ) | $ | 654 |
Adjusted Operating Income (Loss) | ||||||||||||||||||
(for the second quarter ended March 31, 2018) | ||||||||||||||||||
Beef | Pork | Chicken | Prepared Foods | Other | Total | |||||||||||||
Reported operating income (loss) | $ | 92 | $ | 67 | $ | 231 | $ | 119 | $ | (15 | ) | $ | 494 | |||||
Add: One-time cash bonus to frontline employees | 27 | 12 | 51 | 19 | — | 109 | ||||||||||||
Add: Restructuring and related charges | 1 | — | 6 | 5 | — | 12 | ||||||||||||
Add: Impairment net of a realized gain associated with the divestitures of non-protein businesses | — | — | — | 75 | — | 75 | ||||||||||||
Adjusted operating income (loss) | $ | 120 | $ | 79 | $ | 288 | $ | 218 | $ | (15 | ) | $ | 690 |
Adjusted Operating Income (Loss) | ||||||||||||||||||
(for the six months ended March 30, 2019) | ||||||||||||||||||
Beef | Pork | Chicken | Prepared Foods | Other | Total | |||||||||||||
Reported operating income (loss) | $ | 461 | $ | 195 | $ | 301 | $ | 510 | $ | (25 | ) | $ | 1,442 | |||||
Add: Restructuring and related charges | — | — | 9 | 7 | — | 16 | ||||||||||||
Add: Keystone purchase accounting and acquisition related costs | — | — | 13 | — | 24 | 37 | ||||||||||||
Adjusted operating income (loss) | $ | 461 | $ | 195 | $ | 323 | $ | 517 | $ | (1 | ) | $ | 1,495 |
Adjusted Operating Income (Loss) | ||||||||||||||||||
(for the six months ended March 31, 2018) | ||||||||||||||||||
Beef | Pork | Chicken | Prepared Foods | Other | Total | |||||||||||||
Reported operating income (loss) | $ | 348 | $ | 218 | $ | 503 | $ | 375 | $ | (28 | ) | $ | 1,416 | |||||
Add: One-time cash bonus to frontline employees | 27 | 12 | 51 | 19 | — | 109 | ||||||||||||
Add: Restructuring and related charges | 2 | 1 | 15 | 13 | — | 31 | ||||||||||||
Add: Impairment net of a realized gain associated with the divestitures of non-protein businesses | — | — | — | 79 | — | 79 | ||||||||||||
Adjusted operating income (loss) | $ | 377 | $ | 231 | $ | 569 | $ | 486 | $ | (28 | ) | $ | 1,635 |
Media Contact: Gary Mickelson, 479-290-6111 Investor Contact: Jon Kathol, 479-290-4235 | Source: Tyson Foods, Inc. Category: IR, Newsroom |