(State or other jurisdiction of incorporation or organization) | (Commission File Number) | (I.R.S. Employer Identification No.) | |||||||
(Address of Principal Executive Offices) | (Zip Code) |
Title of Each Class | Trading Symbol | Name of Each Exchange on Which Registered | ||
Par Value | $ |
(d) | Exhibits |
Exhibit Number | Description |
99.1 | |
104 | Cover Page Interactive Data File formatted in iXBRL |
TYSON FOODS, INC. | |||
Date: November 16, 2020 | By: | /s/ Stewart Glendinning | |
Name: | Stewart Glendinning | ||
Title: | Executive Vice President and Chief Financial Officer | ||
(in millions, except per share data) | Fourth Quarter | Twelve Months Ended | |||||||||||||
2020 | 2019 | 2020 | 2019 | ||||||||||||
Sales | $ | 11,460 | $ | 10,884 | $ | 43,185 | $ | 42,405 | |||||||
Operating Income | 1,012 | 604 | 3,114 | 2,827 | |||||||||||
Net Income | 695 | 372 | 2,150 | 2,035 | |||||||||||
Less: Net Income Attributable to Noncontrolling Interests | 3 | 3 | 10 | 13 | |||||||||||
Net Income Attributable to Tyson | $ | 692 | $ | 369 | $ | 2,140 | $ | 2,022 | |||||||
Net Income Per Share Attributable to Tyson | $ | 1.90 | $ | 1.01 | $ | 5.86 | $ | 5.52 | |||||||
Adjusted¹ Sales | $ | 10,641 | $ | 10,884 | $ | 42,366 | $ | 42,405 | |||||||
Adjusted¹ Operating Income | $ | 961 | $ | 686 | $ | 3,116 | $ | 2,977 | |||||||
Adjusted¹ Net Income Per Share Attributable to Tyson | $ | 1.81 | $ | 1.21 | $ | 5.64 | $ | 5.46 |
• | GAAP EPS of $5.86, up 6% from prior year; Adjusted EPS of $5.64 (52-week basis), up 3% from prior year |
• | GAAP operating income of $3,114 million, up 10% from prior year; Adjusted operating income of $3,116 million (52-week basis), up 5% from prior year |
• | Total Company GAAP operating margin of 7.2%; Adjusted operating margin of 7.4% (52-week basis) |
• | Generated approximately $3.9 billion of operating cash flows |
• | Results negatively impacted by approximately $540 million of direct incremental expenses related to COVID-19 |
• | GAAP EPS of $1.90, up 88% from prior year; Adjusted EPS of $1.81 (13-week basis), up 50% from prior year |
• | GAAP operating income of $1,012 million, up 68% from prior year; Adjusted operating income of $961 million (13-week basis), up 40% from prior year |
• | Total Company GAAP operating margin of 8.8%; Adjusted operating margin of 9.0% (13-week basis) |
• | Liquidity of $3.2 billion at October 3, 2020 |
• | Reduced total debt by $690 million |
• | Results negatively impacted by approximately $200 million of direct incremental expenses related to COVID-19 |
Sales | ||||||||||||||||||||
(for the fourth quarter and twelve months ended October 3, 2020, and September 28, 2019) | ||||||||||||||||||||
Fourth Quarter | Twelve Months Ended | |||||||||||||||||||
Volume | Avg. Price | Volume | Avg. Price | |||||||||||||||||
2020 | 2019 | Change | Change | 2020 | 2019 | Change | Change | |||||||||||||
Beef | $ | 4,272 | $ | 3,861 | 11.8 | % | (1.2 | )% | $ | 15,742 | $ | 15,828 | (4.5 | )% | 4.0 | % | ||||
Pork | 1,368 | 1,258 | 15.2 | % | (6.4 | )% | 5,128 | 4,932 | 1.8 | % | 2.2 | % | ||||||||
Chicken | 3,433 | 3,447 | 1.9 | % | (2.3 | )% | 13,234 | 13,300 | 0.1 | % | (0.6 | )% | ||||||||
Prepared Foods | 2,277 | 2,153 | 1.6 | % | 4.2 | % | 8,532 | 8,418 | (1.9 | )% | 3.3 | % | ||||||||
International/Other | 491 | 513 | (3.5 | )% | (1.0 | )% | 1,856 | 1,289 | 50.1 | % | (6.1 | )% | ||||||||
Intersegment Sales | (381 | ) | (348 | ) | n/a | n/a | (1,307 | ) | (1,362 | ) | n/a | n/a | ||||||||
Total | $ | 11,460 | $ | 10,884 | 5.9 | % | (0.6 | )% | $ | 43,185 | $ | 42,405 | 0.7 | % | 1.1 | % |
Operating Income (Loss) | ||||||||||||||||||||
(for the fourth quarter and twelve months ended October 3, 2020, and September 28, 2019) | ||||||||||||||||||||
Fourth Quarter | Twelve Months Ended | |||||||||||||||||||
Operating Margin | Operating Margin | |||||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | |||||||||||||
Beef | $ | 516 | $ | 376 | 12.1 | % | 9.7 | % | $ | 1,686 | $ | 1,107 | 10.7 | % | 7.0 | % | ||||
Pork | 174 | 26 | 12.7 | % | 2.1 | % | 565 | 263 | 11.0 | % | 5.3 | % | ||||||||
Chicken | 86 | 90 | 2.5 | % | 2.6 | % | 122 | 621 | 0.9 | % | 4.7 | % | ||||||||
Prepared Foods | 249 | 104 | 10.9 | % | 4.8 | % | 743 | 843 | 8.7 | % | 10.0 | % | ||||||||
International/Other | (13 | ) | 8 | n/a | n/a | (2 | ) | (7 | ) | n/a | n/a | |||||||||
Total | $ | 1,012 | $ | 604 | 8.8 | % | 5.5 | % | $ | 3,114 | $ | 2,827 | 7.2 | % | 6.7 | % |
Adjusted Sales (Non-GAAP) | ||||||||||||||||||||
(for the fourth quarter and twelve months ended October 3, 2020, and September 28, 2019) | ||||||||||||||||||||
Fourth Quarter | Twelve Months Ended | |||||||||||||||||||
Adjusted Volume | Adjusted Avg. Price | Adjusted Volume | Adjusted Avg. Price | |||||||||||||||||
2020 | 2019 | Change | Change | 2020 | 2019 | Change | Change | |||||||||||||
Beef | $ | 3,966 | $ | 3,861 | 3.8 | % | (1.1 | )% | $ | 15,436 | $ | 15,828 | (6.5 | )% | 4.0 | % | ||||
Pork | 1,270 | 1,258 | 6.9 | % | (5.9 | )% | 5,030 | 4,932 | (0.2 | )% | 2.2 | % | ||||||||
Chicken | 3,188 | 3,447 | (5.4 | )% | (2.1 | )% | 12,989 | 13,300 | (1.7 | )% | (0.6 | )% | ||||||||
Prepared Foods | 2,114 | 2,153 | (5.6 | )% | 3.8 | % | 8,369 | 8,418 | (3.7 | )% | 3.1 | % | ||||||||
International/Other | 456 | 513 | (10.4 | )% | (0.9 | )% | 1,821 | 1,289 | 47.7 | % | (6.5 | )% | ||||||||
Intersegment Sales | (353 | ) | (348 | ) | n/a | n/a | (1,279 | ) | (1,362 | ) | n/a | n/a | ||||||||
Total | $ | 10,641 | $ | 10,884 | (1.6 | )% | (0.6 | )% | $ | 42,366 | $ | 42,405 | (1.3 | )% | 1.2 | % |
Adjusted Operating Income (Loss) (Non-GAAP) | ||||||||||||||||||||
(for the fourth quarter and twelve months ended October 3, 2020, and September 28, 2019) | ||||||||||||||||||||
Fourth Quarter | Twelve Months Ended | |||||||||||||||||||
Adjusted Operating Margin (Non-GAAP) | Adjusted Operating Margin (Non-GAAP) | |||||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | |||||||||||||
Beef | $ | 483 | $ | 407 | 12.2 | % | 10.5 | % | $ | 1,659 | $ | 1,139 | 10.7 | % | 7.2 | % | ||||
Pork | 162 | 27 | 12.8 | % | 2.1 | % | 555 | 264 | 11.0 | % | 5.4 | % | ||||||||
Chicken | 91 | 95 | 2.9 | % | 2.8 | % | 148 | 655 | 1.1 | % | 4.9 | % | ||||||||
Prepared Foods | 236 | 149 | 11.2 | % | 6.9 | % | 752 | 902 | 9.0 | % | 10.7 | % | ||||||||
International/Other | (11 | ) | 8 | n/a | n/a | 2 | 17 | n/a | n/a | |||||||||||
Total | $ | 961 | $ | 686 | 9.0 | % | 6.3 | % | $ | 3,116 | $ | 2,977 | 7.4 | % | 7.0 | % |
• | We incurred direct incremental expenses associated with the impact of COVID-19 totaling approximately $200 million and $540 million for the fourth quarter and twelve months of fiscal year 2020, respectively. These direct incremental expenses primarily included team member costs associated with worker health and availability and production facility downtime, including direct costs for personal protection equipment, production facility sanitization, COVID-19 testing, donations, product downgrades and rendered product, partially offset by CARES Act credits. Other indirect costs associated with COVID-19 are not reflected in this amount, including costs associated with raw materials, distribution and transportation, plant underutilization and reconfiguration, premiums paid to cattle producers and pricing discounts. |
• | Beef - Sales volume increased 11.8%, or increased 3.8% after removing the impact of an additional week, for the fourth quarter of fiscal 2020 primarily due to a fire that caused the temporary closure of a production facility during the fourth quarter of fiscal 2019. Sales volume decreased 4.5%, or decreased 6.5% after removing the impact of an additional week, for fiscal 2020 due to lower production throughput associated with the impact of COVID-19 during portions of fiscal 2020 and a reduction in live cattle harvest capacity as a result of a fire that caused the temporary closure of a production facility for the majority of the first quarter of fiscal 2020. Average sales price decreased in the fourth quarter of fiscal 2020 associated with increased availability of live cattle supply and lower livestock cost. Average sales price increased in fiscal 2020 as beef demand remained strong amid supply disruptions related to the impact of COVID-19. Operating income increased primarily due to market conditions, including COVID-19 disruptions, which increased the spread between preexisting contractual agreements and the cost of fed cattle, and the impact of an additional week in fiscal 2020, partially offset by price reductions offered to customers, as well as production inefficiencies and direct incremental expenses related to COVID-19. Additionally, the fourth quarter of fiscal 2019 was impacted by $31 million of net incremental costs from the production facility fire. |
• | Pork - Sales volume increased 15.2%, or increased 6.9% after removing the impact of an additional week, for the fourth quarter of fiscal 2020 due to strong demand for our pork products and increased domestic availability of live hogs. Sales volume increased 1.8%, or decreased slightly after removing the impact of an additional week, for fiscal 2020, due to strong demand for our pork products and increased domestic availability of live hogs, offset by lower production throughput associated with COVID-19 during portions of fiscal 2020. Average sales price in the fourth quarter of fiscal 2020 decreased associated with lower livestock costs. Average sales price in fiscal 2020 increased as pork demand remained strong amid supply disruptions related to the impact of COVID-19, partially offset by lower livestock costs. Operating income increased primarily due to market conditions, including COVID-19 disruptions, which increased the spread between preexisting contractual agreements and the cost of live hogs, and the impact of an additional week in fiscal 2020, partially offset by production inefficiencies and direct incremental expenses related to COVID-19. |
• | Chicken - Sales volume increased 1.9%, or decreased 5.4% after removing the impact of an additional week, for fourth quarter of fiscal 2020, and increased slightly, or decreased 1.7% after removing the impact of an additional week, for fiscal 2020 primarily due to lower production throughput associated with the impact of COVID-19 during portions of fiscal 2020 and lower foodservice demand, partially offset by increased retail demand. Average sales price decreased primarily due to weaker chicken pricing as a result of market conditions. Operating income decreased primarily from market conditions, unfavorable product mix, as well as production inefficiencies and direct incremental expenses related to COVID-19. Operating income was also impacted by approximately $45 million of net derivative gains in the fourth quarter of fiscal 2020 and approximately $70 million of net losses in the fourth quarter of 2019, in addition to approximately $50 million of decreased feed ingredient costs in the fourth quarter of fiscal 2020 as compared to the fourth quarter of fiscal 2019. For fiscal 2020, net derivative results and feed ingredient costs were relatively flat as compared to fiscal 2019. Operating income was further impacted by $34 million and $21 million in restructuring costs incurred in fiscal 2020 and fiscal 2019, respectively. |
• | Prepared Foods - Sales volume increased 1.6%, or decreased 5.6% after removing the impact of an additional week, for fourth quarter of fiscal 2020, and decreased 1.9%, or decreased 3.7% after removing the impact of an additional week, for fiscal 2020 as growth in volume across the retail channel was offset by a reduction in the foodservice channel related to reduced demand and lower production throughput due to the impact of COVID-19 during portions of fiscal 2020. Average sales price increased in the fourth quarter and for fiscal 2020 due to favorable product mix associated with the surge in retail demand, and for fiscal 2020, the pass through of increased raw material costs. Operating income increased in the fourth quarter of fiscal 2020 due to favorable product mix associated with strong demand for retail products and the impact of an additional week, partially offset by the impacts of reduced foodservice sales. Operating income decreased in fiscal 2020 primarily due to increased operating costs, including a $105 million increase in net raw material costs and derivative losses, as well as production inefficiencies and direct incremental expenses related to COVID-19, partially offset by reduced promotional spend. Operating income was also impacted by $28 million and $18 million in restructuring costs incurred in fiscal 2020 and fiscal 2019, respectively. Additionally, operating income in the fourth quarter of fiscal 2019 was further impacted by a $41 million impairment from a planned divestiture of a business. |
• | COVID-19 – We continue to proactively manage the company and its operations through this global pandemic. Given the nature of our business, demand for food and protein may shift amongst sales channels and experience disruptions, but over time we expect worldwide demand to continue to increase. We are experiencing multiple challenges related to the pandemic. These challenges are anticipated to increase our operating costs and negatively impact our volumes into fiscal 2021. We cannot currently predict the ultimate impact that COVID-19 will have on our short- and long-term demand, as it will depend on, among other things, the severity and duration of the COVID-19 crisis. Our liquidity is expected to be adequate to continue to run our operations and meet our obligations as they become due. |
• | Beef – USDA projects domestic production will increase approximately 2% in fiscal 2021 as compared to a COVID-19 impacted fiscal 2020. For fiscal 2021, we also expect sufficient supplies in regions where we operate our plants. |
• | Pork – USDA projects relatively flat to slightly increased domestic production in fiscal 2021 as compared to a COVID-19 impacted fiscal 2020. |
• | Chicken – USDA projects a relatively flat to slightly increased outlook for chicken production in fiscal 2021 as compared to fiscal 2020. |
• | Prepared Foods – We will continue to be responsive to changes in consumer behavior as a result of the impacts of COVID-19 as we move into fiscal 2021. |
• | International/Other – We expect improved results from our foreign operations in fiscal 2021. |
• | Revenue – We expect sales to be $42 billion to $44 billion for fiscal 2021. |
• | Capital Expenditures – For fiscal 2021, we expect capital expenditures to be approximately $1.2 billion to $1.4 billion. Capital expenditures include spending for capacity expansion, growth, safety, animal well-being, infrastructure replacements and upgrades, and operational improvements that are expected to result in production and labor efficiencies, yield improvements and sales channel flexibility. |
• | Net Interest Expense – We expect net interest expense to approximate $440 million for fiscal 2021. |
• | Liquidity – We expect total liquidity, which was approximately $3.2 billion at October 3, 2020, to remain above our minimum liquidity target of $1.0 billion. |
• | Tax Rate – We currently expect our adjusted effective tax rate to be around 23% in fiscal 2021. |
• | Dividends – Effective November 13, 2020, the Board of Directors increased the quarterly dividend previously declared on August 6, 2020, to $0.445 per share on our Class A common stock and $0.4005 per share on our Class B common stock. The increased quarterly dividend is payable on December 15, 2020, to shareholders of record at the close of business on December 1, 2020. The Board also declared a quarterly dividend of $0.445 per share on our Class A common stock and $0.4005 per share on our Class B common stock, payable on March 15, 2021, to shareholders of record at the close of business on March 1, 2021. We anticipate the remaining quarterly dividends in fiscal 2021 will be $0.445 and $0.4005 per share of our Class A and Class B stock, respectively. This results in an annual dividend rate in fiscal 2021 of $1.78 for Class A shares and $1.602 for Class B shares, or a 6% increase compared to the fiscal 2020 annual dividend rate. |
Three Months Ended | Twelve Months Ended | ||||||||||||||
October 3, 2020 | September 28, 2019 | October 3, 2020 | September 28, 2019 | ||||||||||||
Sales | $ | 11,460 | $ | 10,884 | $ | 43,185 | $ | 42,405 | |||||||
Cost of Sales | 9,850 | 9,745 | 37,801 | 37,383 | |||||||||||
Gross Profit | 1,610 | 1,139 | 5,384 | 5,022 | |||||||||||
Selling, General and Administrative | 598 | 535 | 2,270 | 2,195 | |||||||||||
Operating Income | 1,012 | 604 | 3,114 | 2,827 | |||||||||||
Other (Income) Expense: | |||||||||||||||
Interest income | (1 | ) | (2 | ) | (10 | ) | (11 | ) | |||||||
Interest expense | 124 | 123 | 485 | 462 | |||||||||||
Other, net | 2 | 17 | (131 | ) | (55 | ) | |||||||||
Total Other (Income) Expense | 125 | 138 | 344 | 396 | |||||||||||
Income before Income Taxes | 887 | 466 | 2,770 | 2,431 | |||||||||||
Income Tax Expense | 192 | 94 | 620 | 396 | |||||||||||
Net Income | 695 | 372 | 2,150 | 2,035 | |||||||||||
Less: Net Income Attributable to Noncontrolling Interests | 3 | 3 | 10 | 13 | |||||||||||
Net Income Attributable to Tyson | $ | 692 | $ | 369 | $ | 2,140 | $ | 2,022 | |||||||
Weighted Average Shares Outstanding: | |||||||||||||||
Class A Basic | 292 | 293 | 293 | 293 | |||||||||||
Class B Basic | 70 | 70 | 70 | 70 | |||||||||||
Diluted | 364 | 367 | 365 | 366 | |||||||||||
Net Income Per Share Attributable to Tyson: | |||||||||||||||
Class A Basic | $ | 1.95 | $ | 1.03 | $ | 6.02 | $ | 5.67 | |||||||
Class B Basic | $ | 1.76 | $ | 0.93 | $ | 5.41 | $ | 5.10 | |||||||
Diluted | $ | 1.90 | $ | 1.01 | $ | 5.86 | $ | 5.52 | |||||||
Dividends Declared Per Share: | |||||||||||||||
Class A | $ | 0.420 | $ | 0.375 | $ | 1.725 | $ | 1.575 | |||||||
Class B | $ | 0.378 | $ | 0.338 | $ | 1.553 | $ | 1.418 | |||||||
Sales Growth | 5.3 | % | 1.8 | % | |||||||||||
Margins: (Percent of Sales) | |||||||||||||||
Gross Profit | 14.0 | % | 10.5 | % | 12.5 | % | 11.8 | % | |||||||
Operating Income | 8.8 | % | 5.5 | % | 7.2 | % | 6.7 | % | |||||||
Net Income Attributable to Tyson | 6.0 | % | 3.4 | % | 5.0 | % | 4.8 | % | |||||||
Effective Tax Rate | 21.6 | % | 20.2 | % | 22.4 | % | 16.3 | % |
October 3, 2020 | September 28, 2019 | ||||||
Assets | |||||||
Current Assets: | |||||||
Cash and cash equivalents | $ | 1,420 | $ | 484 | |||
Accounts receivable, net | 1,952 | 2,173 | |||||
Inventories | 4,144 | 4,108 | |||||
Other current assets | 367 | 404 | |||||
Total Current Assets | 7,883 | 7,169 | |||||
Net Property, Plant and Equipment | 7,596 | 7,282 | |||||
Goodwill | 10,899 | 10,844 | |||||
Intangible Assets, net | 6,774 | 7,037 | |||||
Other Assets | 1,589 | 765 | |||||
Total Assets | $ | 34,741 | $ | 33,097 | |||
Liabilities and Shareholders’ Equity | |||||||
Current Liabilities: | |||||||
Current debt | $ | 548 | $ | 2,102 | |||
Accounts payable | 1,876 | 1,926 | |||||
Other current liabilities | 1,810 | 1,485 | |||||
Total Current Liabilities | 4,234 | 5,513 | |||||
Long-Term Debt | 10,791 | 9,830 | |||||
Deferred Income Taxes | 2,391 | 2,356 | |||||
Other Liabilities | 1,728 | 1,172 | |||||
Total Tyson Shareholders’ Equity | 15,465 | 14,082 | |||||
Noncontrolling Interests | 132 | 144 | |||||
Total Shareholders’ Equity | 15,597 | 14,226 | |||||
Total Liabilities and Shareholders’ Equity | $ | 34,741 | $ | 33,097 |
Twelve Months Ended | |||||||
October 3, 2020 | September 28, 2019 | ||||||
Cash Flows From Operating Activities: | |||||||
Net income | $ | 2,150 | $ | 2,035 | |||
Depreciation and amortization | 1,192 | 1,098 | |||||
Deferred income taxes | 45 | 92 | |||||
Gain on dispositions of businesses | — | (17 | ) | ||||
Impairment of assets | 48 | 94 | |||||
Stock-based compensation expense | 89 | 77 | |||||
Other, net | (124 | ) | (20 | ) | |||
Net changes in operating assets and liabilities | 474 | (846 | ) | ||||
Cash Provided by Operating Activities | 3,874 | 2,513 | |||||
Cash Flows From Investing Activities: | |||||||
Additions to property, plant and equipment | (1,199 | ) | (1,259 | ) | |||
Purchases of marketable securities | (105 | ) | (64 | ) | |||
Proceeds from sale of marketable securities | 87 | 63 | |||||
Acquisitions, net of cash acquired | — | (2,462 | ) | ||||
Proceeds from sale of business | 29 | 170 | |||||
Acquisition of equity investments | (183 | ) | — | ||||
Other, net | (52 | ) | 88 | ||||
Cash Used for Investing Activities | (1,423 | ) | (3,464 | ) | |||
Cash Flows From Financing Activities: | |||||||
Proceeds from issuance of debt | 1,609 | 4,634 | |||||
Payments on debt | (1,212 | ) | (3,208 | ) | |||
Borrowings on revolving credit facility | 1,210 | 1,135 | |||||
Payments on revolving credit facility | (1,280 | ) | (1,065 | ) | |||
Proceeds from issuance of commercial paper | 14,272 | 17,722 | |||||
Repayments of commercial paper | (15,271 | ) | (17,327 | ) | |||
Purchases of Tyson Class A common stock | (207 | ) | (252 | ) | |||
Dividends | (601 | ) | (537 | ) | |||
Stock options exercised | 30 | 99 | |||||
Other, net | (18 | ) | (30 | ) | |||
Cash (Used for) Provided by Financing Activities | (1,468 | ) | 1,171 | ||||
Effect of Exchange Rate Changes on Cash | (1 | ) | (6 | ) | |||
Increase in Cash and Cash Equivalents and Restricted Cash | 982 | 214 | |||||
Cash and Cash Equivalents and Restricted Cash at Beginning of Year | 484 | 270 | |||||
Cash and Cash Equivalents and Restricted Cash at End of Period | 1,466 | 484 | |||||
Less: Restricted Cash at End of Period | 46 | — | |||||
Cash and Cash Equivalents at End of Period | $ | 1,420 | $ | 484 |
Twelve Months Ended | ||||||
October 3, 2020 | September 28, 2019 | |||||
Net income | $ | 2,150 | $ | 2,035 | ||
Less: Interest income | (10 | ) | (11 | ) | ||
Add: Interest expense | 485 | 462 | ||||
Add: Income tax expense | 620 | 396 | ||||
Add: Depreciation | 900 | 819 | ||||
Add: Amortization (a) | 278 | 267 | ||||
EBITDA | $ | 4,423 | $ | 3,968 | ||
Adjustments to EBITDA: | ||||||
Add: Restructuring and related charges | $ | 75 | $ | 41 | ||
Add: Beef production facility fire costs, net of insurance proceeds | 1 | 31 | ||||
Add/(Less): Loss/(Gain) from pension plan terminations | (116 | ) | 15 | |||
Add: Keystone purchase accounting and acquisition related costs (b) | — | 37 | ||||
Add: Impairment associated with the divestiture of a business | — | 41 | ||||
Less: Gain on sale of investment | — | (55 | ) | |||
Less: Impact of additional week (c) | (96 | ) | — | |||
Total Adjusted EBITDA (52-week basis) | $ | 4,287 | $ | 4,078 | ||
Total gross debt | $ | 11,339 | $ | 11,932 | ||
Less: Cash and cash equivalents | (1,420 | ) | (484 | ) | ||
Less: Short-term investments | — | (1 | ) | |||
Total net debt | $ | 9,919 | $ | 11,447 | ||
Ratio Calculations: | ||||||
Gross debt/EBITDA | 2.6x | 3.0x | ||||
Net debt/EBITDA | 2.2x | 2.9x | ||||
Gross debt/Adjusted EBITDA | 2.6x | 2.9x | ||||
Net debt/Adjusted EBITDA | 2.3x | 2.8x |
(a) | Excludes the amortization of debt issuance and debt discount expense of $14 million and $12 million for the twelve months ended October 3, 2020 and September 28, 2019, respectively, as it is included in interest expense. |
(b) | Keystone acquisition and integration costs for fiscal year 2019 included $11 million of purchase accounting adjustments and $26 million of acquisition related costs. |
(c) | The estimated impact to adjusted EBITDA of the additional week in fiscal 2020 was calculated as fourth quarter EBITDA (14-week basis) of $1,322 (which is comprised of fourth quarter 14-week basis net income of $695 million, less interest income of $1 million, plus interest expense of $124 million, plus income tax expense of $192 million, plus depreciation and amortization of $312 million which excludes the amortization of debt issuance and debt discount expense of $4 million for the three months ended October 3, 2020, as it is included in interest expense) plus fourth quarter restructuring and related charges of $23 million, divided by 14 weeks. |
Fourth Quarter | Twelve Months Ended | ||||||||||||||||||||||||||||||
Pretax Impact | EPS Impact | Pretax Impact | EPS Impact | ||||||||||||||||||||||||||||
2020 | 2019 | 2020 | 2019 | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||||||
Reported net income per share attributable to Tyson | $ | 1.90 | $ | 1.01 | $ | 5.86 | $ | 5.52 | |||||||||||||||||||||||
Add: Restructuring and related charges | $ | 23 | $ | 10 | 0.05 | 0.02 | $ | 75 | $ | 41 | 0.16 | 0.08 | |||||||||||||||||||
Add: Beef production facility fire costs, net of insurance proceeds | $ | — | $ | 31 | — | 0.06 | $ | 1 | $ | 31 | — | 0.06 | |||||||||||||||||||
Less: Gain on sale of investment | $ | — | $ | — | — | — | $ | — | $ | (55 | ) | — | (0.11 | ) | |||||||||||||||||
Less: Recognition of previously unrecognized tax benefit | $ | — | $ | — | — | — | $ | — | $ | — | — | (0.29 | ) | ||||||||||||||||||
Add: Keystone purchase accounting and acquisition related costs (a) | $ | — | $ | — | — | — | $ | — | $ | 37 | — | 0.08 | |||||||||||||||||||
Add/(Less): Loss/(Gain) from pension plan terminations | $ | — | $ | 15 | — | 0.03 | $ | (116 | ) | $ | 15 | (0.24 | ) | 0.03 | |||||||||||||||||
Add: Impairment associated with the divestiture of a business | $ | — | $ | 41 | — | 0.09 | $ | — | $ | 41 | — | 0.09 | |||||||||||||||||||
Less: Impact of additional week (b) | $ | (65 | ) | $ | — | (0.14 | ) | — | $ | (65 | ) | $ | — | (0.14 | ) | — | |||||||||||||||
Adjusted net income per share attributable to Tyson | $ | 1.81 | $ | 1.21 | $ | 5.64 | $ | 5.46 |
(a) | Keystone purchase accounting and acquisition related costs for the twelve 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. |
(b) | The estimated Pretax Impact of the additional week in the fourth quarter and twelve months of fiscal 2020 was calculated by dividing the sum of the fourth quarter's Adjusted operating income (loss) prior to adjustment for additional week (refer to Operating Income Reconciliation) net of Total Other (Income) Expense by 14 weeks. |
Adjusted Operating Income (Loss) | ||||||||||||||||||
(for the fourth quarter ended October 3, 2020) | ||||||||||||||||||
Beef | Pork | Chicken | Prepared Foods | International/Other | Total | |||||||||||||
Reported operating income (loss) | $ | 516 | $ | 174 | $ | 86 | $ | 249 | $ | (13 | ) | $ | 1,012 | |||||
Add: Restructuring and related charges | 4 | 1 | 12 | 5 | 1 | 23 | ||||||||||||
Adjusted operating income (loss) prior to adjustment for additional week | $ | 520 | $ | 175 | $ | 98 | $ | 254 | $ | (12 | ) | $ | 1,035 | |||||
Less: Estimated impact of additional week (a) | (37 | ) | (13 | ) | (7 | ) | (18 | ) | 1 | (74 | ) | |||||||
Adjusted operating income (loss) | $ | 483 | $ | 162 | $ | 91 | $ | 236 | $ | (11 | ) | $ | 961 |
Adjusted Operating Income | ||||||||||||||||||
(for fourth quarter ended September 28, 2019) | ||||||||||||||||||
Beef | Pork | Chicken | Prepared Foods | International/Other | Total | |||||||||||||
Reported operating income | $ | 376 | $ | 26 | $ | 90 | $ | 104 | $ | 8 | $ | 604 | ||||||
Add: Restructuring and related charges | — | 1 | 5 | 4 | — | 10 | ||||||||||||
Add: Beef production facility fire costs | 31 | — | — | — | — | 31 | ||||||||||||
Add: Impairment associated with the planned divestiture of a business | — | — | — | 41 | — | 41 | ||||||||||||
Adjusted operating income | $ | 407 | $ | 27 | $ | 95 | $ | 149 | $ | 8 | $ | 686 |
Adjusted Operating Income (Loss) | ||||||||||||||||||
(for the twelve months ended October 3, 2020) | ||||||||||||||||||
Beef | Pork | Chicken | Prepared Foods | International/Other | Total | |||||||||||||
Reported operating income (loss) | $ | 1,686 | $ | 565 | $ | 122 | $ | 743 | $ | (2 | ) | $ | 3,114 | |||||
Add: Restructuring and related charges | 9 | 3 | 33 | 27 | 3 | 75 | ||||||||||||
Add: Beef production facility fire costs, net of insurance proceeds | 1 | — | — | — | — | 1 | ||||||||||||
Adjusted operating income prior to adjustment for additional week | $ | 1,696 | $ | 568 | $ | 155 | $ | 770 | $ | 1 | $ | 3,190 | ||||||
Less: Estimated impact of additional week (a) | (37 | ) | (13 | ) | (7 | ) | (18 | ) | 1 | (74 | ) | |||||||
Adjusted operating income | $ | 1,659 | $ | 555 | $ | 148 | $ | 752 | $ | 2 | $ | 3,116 |
(a) | The estimated impact of the additional week in the fourth quarter and twelve months of fiscal 2020 was calculated by dividing the fourth quarter's Adjusted operating income (loss) prior to adjustment for additional week by 14 weeks. |
Adjusted Operating Income (Loss) | ||||||||||||||||||
(for the twelve months ended September 28, 2019) | ||||||||||||||||||
Beef | Pork | Chicken | Prepared Foods | International/Other | Total | |||||||||||||
Reported operating income (loss) | $ | 1,107 | $ | 263 | $ | 621 | $ | 843 | $ | (7 | ) | $ | 2,827 | |||||
Add: Restructuring and related charges | 1 | 1 | 21 | 18 | — | 41 | ||||||||||||
Add: Keystone purchase accounting and acquisition related costs | — | — | 13 | — | 24 | 37 | ||||||||||||
Add: Beef production plant fire costs | 31 | — | — | — | — | 31 | ||||||||||||
Add: Impairment associated with the planned divestiture of a business | — | — | — | 41 | — | 41 | ||||||||||||
Adjusted operating income | $ | 1,139 | $ | 264 | $ | 655 | $ | 902 | $ | 17 | $ | 2,977 |
Adjusted Sales (Non-GAAP) Reconciliation | ||||||||||||||||||
(for the fourth quarter and twelve months ended October 3, 2020) | ||||||||||||||||||
Fourth Quarter | Twelve Months Ended | |||||||||||||||||
Reported Sales | Impact of additional week (a) | Adjusted Sales | Reported Sales | Impact of additional week (a) | Adjusted Sales | |||||||||||||
Beef | $ | 4,272 | $ | (306 | ) | $ | 3,966 | $ | 15,742 | $ | (306 | ) | $ | 15,436 | ||||
Pork | 1,368 | (98 | ) | 1,270 | 5,128 | (98 | ) | 5,030 | ||||||||||
Chicken | 3,433 | (245 | ) | 3,188 | 13,234 | (245 | ) | 12,989 | ||||||||||
Prepared Foods | 2,277 | (163 | ) | 2,114 | 8,532 | (163 | ) | 8,369 | ||||||||||
International/Other | 491 | (35 | ) | 456 | 1,856 | (35 | ) | 1,821 | ||||||||||
Intersegment Sales | (381 | ) | 28 | (353 | ) | (1,307 | ) | 28 | (1,279 | ) | ||||||||
Total | $ | 11,460 | $ | (819 | ) | $ | 10,641 | $ | 43,185 | $ | (819 | ) | $ | 42,366 |
Media Contact: Gary Mickelson, 479-290-6111 Investor Contact: Jon Kathol, 479-290-4235 | Source: Tyson Foods, Inc. Category: IR, Newsroom |
Document and Entity Information Document |
Nov. 16, 2020
$ / shares
|
---|---|
Entity Central Index Key | 0000100493 |
Document Type | 8-K |
Document Period End Date | Nov. 16, 2020 |
Title of 12(b) Security | Class A Common Stock |
Entity Incorporation, State or Country Code | DE |
Entity File Number | 001-14704 |
Entity Tax Identification Number | 71-0225165 |
Entity Address, Address Line One | 2200 West Don Tyson Parkway, |
Entity Address, City or Town | Springdale, |
Entity Address, State or Province | AR |
Entity Address, Postal Zip Code | 72762-6999 |
City Area Code | (479) |
Local Phone Number | 290-4000 |
Entity Listing, Par Value Per Share | $ 0.10 |
Trading Symbol | TSN |
Security Exchange Name | NYSE |
Entity Registrant Name | TYSON FOODS, INC. |
Amendment Flag | false |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Entity Emerging Growth Company | false |
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