EX-99.1 2 ex99_1.htm EX99_1 ex99_1

Pilgrim's Pride Corporation
  
Net Sales by Primary Market Line
  
for Quarter Ended:
  
   
The following table sets forth net sales attributable to each of our primary product lines and markets served with those products. We based the table on our internal sales reports and their classification of product types and customers. The information in these tables should be read in conjunction with the information in our SEC filings, including the discussion of our primary product lines and markets served with those products included in our most recent Annual Report on Form 10-K.
  
   
Oct 1,
  
   
2005
  
Chicken Sales:
    
(In thousands) 
  
United States
        
Prepared Foods:
        
Foodservice
  
$
405,621
  
Retail
  
$
77,001
  
Total Prepared Foods
  
$
482,622
  
         
Fresh Chicken:
       
Foodservice
  
$
401,016
  
Retail
  
$
158,410
  
Total Fresh Chicken
  
$
559,425
  
Export and Other
        
Prepared Foods
  
$
13,975
  
Chicken-Other
  
$
106,531
  
Total Export and Other
  
$
120,506
  
Total U.S. Chicken
  
$
1,162,554
  
         
Mexico:
  
$
101,151
  
Total Chicken Sales
  
$
1,263,705
  
         
Total Prepared Foods
    
496,597
  
         
Turkey Sales:
        
Prepared Foods:
        
Foodservice
  
$
7,950
  
Retail
  
$
10,584
  
Total Prepared Foods
  
$
18,534
  
         
Fresh Turkey:
       
Foodservice
  
$
3,837
  
Retail
  
$
26,157
  
Total Fresh Turkey
  
$
29,994
  
Export and Other
        
Prepared Foods
  
$
149
  
Turkey-Other
  
$
1,521
  
Total Export and Other
  
$
1,670
  
         
Total Turkey Sales
  
$
50,198
  
         
Total Prepared Foods
  
$
18,683
  
         
Sale of Other Products
        
U.S.
 
$
163,585
  
Mexico 
  
$
5,181
  
Total Other Products
  
$
168,766
  
Total Net Sales
  
$
1,482,668
  

 

   
Oct 1,
  
   
2005
  
       
Chicken Sales:
        
U.S. Chicken Sales:
        
Prepared Foods:
        
Foodservice
    
34.9
%
Retail
    
6.6
%
Total Prepared Foods
    
41.5
%
         
Fresh Chicken:
       
Foodservice
    
34.5
%
Retail
    
13.6
%
Total Fresh Chicken
    
48.1
%
Export and Other
        
Prepared Foods
    
1.2
%
Chicken-Other
    
9.2
%
Total Export and Other
    
10.4
%
Total U.S. Chicken
    
100.0
%
         
         
         
Turkey Sales:
        
U.S. Turkey Sales:
        
Prepared Foods:
        
Foodservice
    
15.9
%
Retail
    
21.1
%
Total Prepared Foods
    
37.0
%
         
Fresh Turkey:
       
Foodservice
    
7.6
%
Retail
    
52.1
%
Total Fresh Turkey
    
59.7
%
Export and Other
        
Prepared Foods
    
0.3
%
Turkey-Other
    
3.0
%
Total Export and Other
    
3.3
%
Total U.S. Turkey
    
100.0
%
 
 
 
 
Pilgrim's Pride Corporation
  
Net Sales by Primary Market Line
  
for Fiscal Year ended:
  
   
The following table sets forth net sales attributable to each of our primary product lines and markets served with those products. We based the table on our internal sales reports and their classification of product types and customers. The information in these tables should be read in conjunction with the information in our SEC filings, including the discussion of our primary product lines and markets served with those products included in our most recent Annual Report on Form 10-K.
  
   
Fiscal Year Ended
  
   
Oct 1,
  
   
2005
  
   
(In thousands)
  
       
Chicken Sales:
        
United States
        
Prepared Foods:
        
Foodservice
  
$
1,622,901
  
Retail
    
283,392
 
Total Prepared Foods
    
1,906,293
 
 
        
Fresh Chicken:
        
Foodservice
    
1,509,189
 
Retail
    
612,081
 
Total Fresh Chicken
    
2,121,270
 
         
Export and Other
        
Prepared Foods
    
59,473
 
Chicken-Other
    
324,233
 
Total Export and Other
    
383,706
 
Total U.S. Chicken
    
4,411,269
 
         
Mexico:
    
403,353
 
Total Chicken Sales
    
4,814,622
 
         
Total Prepared Foods
    
1,965,766
 
         
         
Turkey Sales:
        
Prepared Foods:
        
Foodservice
    
61,209
 
Retail
    
37,653
 
Total Prepared Foods
    
98,862
 
 
        
Fresh Turkey:
        
Foodservice
    
12,699
 
Retail
    
88,088
 
Total Fresh Turkey
    
100,787
 
Export and Other
        
Prepared Foods
    
981
 
Turkey-Other
    
4,208
 
Total Export and Other
    
5,189
 
Total Turkey Sales
    
204,838
 
         
Total Prepared Foods
    
99,843
 
         
Sales of Other Products
        
U.S.
    
626,056
 
Mexico
    
20,759
 
Total Sale of Other Products
    
646,815
 
Total Net Sales
  
$
5,666,275
  
 

   
Oct 1,
  
   
2005
  
       
       
U.S. Chicken Sales:
        
Prepared Foods:
        
Foodservice
    
36.8
%
Retail
    
6.4
%
Total Prepared Foods
    
43.2
%
 
        
Fresh Chicken:
        
Foodservice
    
34.2
%
Retail
    
13.9
%
Total Fresh Chicken
    
48.1
%
         
Export and Other
        
Prepared Foods
    
1.3
%
Fresh
    
7.4
%
Total Export and Other
    
8.7
%
Total U.S. Chicken
    
100.0
%
         
Prepared Foods
    
44.5
%
         
         
U.S. Turkey Sales:
        
Prepared Foods:
        
Foodservice
    
29.8
%
Retail
    
18.4
%
Total Prepared Foods
    
48.2
%
 
        
Fresh Turkey:
        
Foodservice
    
6.2
%
Retail
    
43.0
%
Total Fresh Turkey
    
49.2
%
Export and Other
        
Prepared Foods
    
0.5
%
Fresh
    
2.1
%
Total Export and Other
    
2.6
%
Total U.S. Turkey
    
100.0
%
         
Prepared Foods
    
48.7
%
 
 
 
Pilgrim's Pride Corporation
Selected Financial Data
for quarter ended:
  
   
Our selected financial data is derived from our financial statements. Historical results should not be taken as necessarily indicative of the results that may be expected for any future period. You should read this financial data in conjunction with the appropriate period financial statements and the related notes and "Management's Discussion and Analysis of Results of Operations and Financial Condition" included in our SEC filings.
  

 

   
10/01/05
  
07/02/05
  
04/02/05
  
01/01/05
  
10/02/04
      
07/03/04
     
04/03/04
  
1/3/2004 (a)(d)
 
(In thousands except per share data)
                                                              
Income Statement Data:
                                                              
Net sales
  
$
1,482,668
  
$
1,440,039
  
$
1,375,321
  
$
1,368,247
  
$
1,486,454
        
$
1,447,995
        
$
1,384,908
  
$
1,044,366
  
Non-recurring recoveries
    
-
   
-
   
-
   
-
   
(23,815
)
        
-
         
(68
)
  
(8
)
Turkey restructuring and related costs
    
-
   
-
   
-
   
-
   
8,178
         
63,905
                   
Gross margin
    
200,805
   
219,221
   
164,056
   
161,118
   
210,769
         
118,220
         
122,937
   
77,112
 
Selling, general and administrative expenses
    
80,956
   
83,277
   
75,101
   
70,103
   
74,892
         
73,181
         
61,426
   
46,302
 
Operating income (loss)
    
119,849
   
135,993
   
88,955
   
91,015
   
135,878
   
(c
)
  
37,116
   
(c
)
  
61,511
   
30,810
 
Interest expense, net
    
10,068
   
12,322
   
9,318
   
12,224
   
11,471
         
14,690
         
13,524
   
12,444
 
Miscellaneous, net
    
437
   
88
   
(10,732
)
  
(1,015
)
  
3,222
         
285
         
1,257
   
(319
)
Income (loss) before income taxes and extraordinary charge
    
109,344
   
123,677
   
90,593
   
79,909
   
121,306
         
22,077
         
46,545
   
18,607
 
Income tax expense (benefit)
    
34,616
   
38,324
   
34,204
   
31,400
   
46,016
         
12,263
         
13,594
   
8,321
 
Income (loss) before extraordinary charge
    
74,728
   
85,353
   
56,389
   
48,509
   
75,290
         
9,814
         
32,951
   
10,286
 
Extraordinary charge - net of tax
    
-
   
-
   
-
   
-
   
-
         
-
         
-
   
-
 
Net income (loss)
  
$
74,728
  
$
85,353
  
$
56,389
  
$
48,509
  
$
75,290
        
$
9,814
        
$
32,951
  
$
10,286
  
                                                               
Per Common Share Data:
                                                             
Income (loss) before extraordinary charge
  
$
1.12
  
$
1.28
  
$
0.85
  
$
0.73
  
$
1.13
        
$
0.15
        
$
0.50
  
$
0.20
  
Extraordinary charge - early repayment of debt
    
-
   
-
   
-
   
-
   
-
         
-
         
-
   
-
 
Net Income (loss)
  
$
1.12
  
$
1.28
  
$
0.85
  
$
0.73
  
$
1.13
        
$
0.15
        
$
0.50
  
$
0.20
  
Cash dividends
  
$
0.015
  
$
0.015
  
$
0.015
  
$
0.002
  
$
0.015
        
$
0.015
        
$
0.015
  
$
0.015
  
Book value
  
$
18.31
  
$
16.69
  
$
15.35
  
$
14.52
  
$
13.87
        
$
12.77
        
$
12.62
  
$
12.10
  
                                                               
Balance Sheet Summary:
                                                              
Working capital
  
$
404,411
  
$
568,947
  
$
492,251
  
$
430,334
  
$
383,726
        
$
365,903
        
$
325,602
  
$
361,346
  
Total assets
  
$
2,514,350
  
$
2,402,850
  
$
2,269,536
  
$
2,279,836
  
$
2,245,989
        
$
2,134,229
        
$
2,148,048
  
$
2,197,302
  
Notes payable and current maturities of long-term debt
  
$
8,603
  
$
8,552
  
$
8,501
  
$
8,454
  
$
8,428
        
$
8,175
        
$
8,331
  
$
11,413
  
Long-term debt, less current maturities
  
$
581,863
  
$
521,087
  
$
523,404
  
$
525,602
  
$
535,866
        
$
591,297
        
$
643,298
  
$
714,325
  
Total debt
  
$
527,466
  
$
529,639
  
$
531,905
  
$
534,056
  
$
544,294
        
$
599,472
        
$
651,629
  
$
725,738
  
Senior secured debt (included in Total Debt)
  
$
-
  
$
-
  
$
-
  
$
-
  
$
-
        
$
299,472
        
$
255,629
  
$
425,738
  
Total stockholders' equity
  
$
1,223,598
  
$
1,110,628
  
$
1,026,116
  
$
970,422
  
$
922,956
        
$
849,862
        
$
840,193
  
$
808,444
  
                                                               
Cash Flow Summary:
                                                             
Operating cash flow
  
$
130,167
  
$
190,088
  
$
5,381
  
$
167,437
  
$
46,661
        
$
65,884
        
$
41,063
  
$
118,797
  
Depreciation & amortization (b)
  
$
40,681
  
$
30,421
  
$
33,777
  
$
30,065
  
$
25,668
        
$
29,122
        
$
33,087
  
$
25,911
  
Capital expenditures
  
$
26,439
  
$
37,994
  
$
27,994
  
$
24,160
  
$
23,805
        
$
(15,856
)
      
$
19,429
  
$
(20,552
)
Business acquisitions
  
$
-
  
$
-
  
$
-
  
$
-
  
$
32,495
        
$
538
        
$
1,343
  
$
(302,712
)
Financing activities, net
  
$
36,510
  
$
(3,264
)
$
(3,150
)
$
(11,237
)
$
(56,176
)
      
$
(60,957
)
      
$
(71,381
)
$
(285,180
)
                                                               
Cashflow Ratios:
                                                              
EBITDA (f)
  
$
159,512
  
$
165,830
  
$
133,108
  
$
121,628
  
$
158,005
        
$
65,246
        
$
92,735
  
$
56,515
  
EBITDA (last four qtrs.)
  
$
580,078
  
$
578,571
  
$
477,987
  
$
437,614
  
$
372,501
        
$
260,088
        
$
248,073
  
$
200,847
  
                                                               
Key Indicators (as a percentage of net sales):
                                                              
Gross margin
    
13.5
%
  
15.2
%
  
11.9
%
  
11.8
%
  
14.2
%
        
8.2
%
        
8.9
%
  
7.4
%
Selling, general and administrative expenses
    
5.5
%
  
5.8
%
  
5.5
%
  
5.1
%
  
5.0
%
        
5.1
%
        
4.4
%
  
4.4
%
Operating income (loss)
    
8.1
%
  
9.4
%
  
6.5
%
  
6.7
%
  
9.1
%
        
2.6
%
        
4.4
%
  
3.0
%
Interest expense, net
    
0.7
%
  
0.9
%
  
0.7
%
  
0.9
%
  
0.8
%
        
1.0
%
        
1.0
%
  
1.2
%
Net income (loss)
    
5.0
%
  
5.9
%
  
4.1
%
  
3.5
%
  
5.1
%
        
0.7
%
        
2.4
%
  
1.0
%
 

(a) The Company acquired the Conagra Chicken Division on November 23, 2003 for $635.2 including the non-cash value of common stock issued of $357.5 million. The acquisition has been accounted for as a purchase, and the results of operations for this acquisition have been included in our consolidated results of operations since the acquisition date.
  
(b) Includes amortization of capitalized financing costs of approximately
 
$
581
  
$
590
  
$
580
  
$
570
  
$
440
  
$
643
  
$
421
  
$
447
  

(c) Includes Turkey Restructuring Provision of $8.2 million and $63.9 million for the three months ended October 2 and July 3, 2004 respectively.
  
 
(d) Fiscal quarter ended January 3, 2004 had 14 weeks.
  
 
(e) Includes $52.2 million in restructuring charges for the three months ended July 3, 2004.
  
(f) “EBITDA” is defined as the sum of net income (loss) before extraordinary charges, interest, taxes, depreciation and amortization. EBITDA is presented because it is used by us, and we believe it is frequently used by securities analysts, investors and other interested parties, in addition to and not in lieu of GAAP results, to compare the performance of companies. EBITDA is not a measurement of financial performance under generally accepted accounting principles and 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 generally accepted accounting principles. EBITDA is calculated as follows:
  

 
Net Income
  
$
74,728
  
$
85,353
  
$
56,389
  
$
48,509
  
$
75,290
  
$
9,814
  
$
32,951
  
$
10,286
  
Add:
                                                 
Extraordinary charge-net of tax
   
-
   
-
   
-
   
-
   
-
   
-
   
-
   
-
 
Income Tax Expense (benefit)
    
34,616
   
38,324
   
34,204
   
31,400
   
46,016
   
12,263
   
13,594
   
8,321
 
Interest expense, net
    
10,068
   
12,322
   
9,318
   
12,224
   
11,471
   
14,690
   
13,524
   
12,444
 
Depreciation and amortization
    
40,681
   
30,421
   
33,777
   
30,065
   
25,668
   
29,122
   
33,087
   
25,911
 
Minus:
                                                  
Amortization of capitalized financing costs
    
581
   
590
   
580
   
570
   
440
   
643
   
421
   
447
 
EBITDA
  
$
159,512
  
$
165,830
  
$
133,108
  
$
121,628
  
$
158,005
  
$
65,246
  
$
92,735
  
$
56,515
  
 
Pilgrim's Pride Corporation
  
Selected Financial Data
  
for fiscal years ended:
  
 
Our selected financial data is derived from our financial statements. Historical results should not be taken as necessarily indicative of the results that may be expected for any future period. You should read this financial data in conjunction with the appropriate period financial statements and the related notes and "Management's Discussion and Analysis of Results of Operations and Financial Condition" included in our SEC filings.
  
   
 
   
2005
  
2004 (a)(b)
  
           
(In thousands except per share data)
              
Income Statement Data:
              
Net sales
  
$
5,666,275
  
$
5,363,723
  
Non-recurring recoveries
    
-
   
(23,891
)
Turkey restructuring and related charges
    
-
   
72,083
 
Gross margin
    
745,199
   
529,039
 
Selling, general and administrative expenses
    
309,387
   
255,802
 
Operating income (loss)
    
435,812
   
265,314
 
Interest expense, net
    
43,932
   
52,129
 
Miscellaneous, net
    
(11,643
)
  
4,445
 
Income (loss) before income taxes and extraordinary charge
    
403,523
   
208,535
 
Income tax expense (benefit)
    
138,544
   
80,195
 
Income (loss) before extraordinary charge
    
264,979
   
128,340
 
Extraordinary charge - net of tax
    
-
   
-
 
Net income (loss)
  
$
264,979
  
$
128,340
  
               
Per Common Share Data:
              
Income (loss) before extraordinary charge
  
$
3.98
  
$
2.05
  
Extraordinary charge - early repayment of debt
  
$
-
  
$
-
  
Net Income (loss)
  
$
3.98
  
$
2.05
  
Cash dividends
  
$
0.060
  
$
0.060
  
Book value
  
$
18.31
  
$
13.87
  
               
Balance Sheet Summary:
              
Working capital
  
$
404,411
  
$
383,726
  
Total assets
  
$
2,514,350
  
$
2,245,989
  
Notes payable and current maturities of long-term debt
  
$
8,603
  
$
8,428
  
Long-term debt, less current maturities
  
$
518,863
  
$
535,866
  
Total debt
  
$
527,466
  
$
544,294
  
Senior secured debt (included in Total Debt)
  
$
-
  
$
-
  
Total stockholders' equity
  
$
1,223,598
  
$
922,956
  
               
Cash Flow Summary:
              
Operating cash flow
  
$
493,073
  
$
272,404
  
Depreciation & amortization (c)
  
$
134,944
  
$
113,788
  
Capital expenditures
  
$
116,588
  
$
79,642
  
Business acquisitions
  
$
-
  
$
272,097
  
Financing activities, net
  
$
18,860
  
$
96,665
  
               
Cashflow Ratios:
              
EBITDA (d)
  
$
580,078
  
$
372,501
  
EBITDA /interest expense, net
   
13.20
   
7.15
 
               
Key Indicators (as a percentage of net sales):
              
Gross margin
    
13.2
%
  
9.9
%
Selling, general and administrative expenses
    
5.5
%
  
4.8
%
Operating income (loss)
    
7.7
%
  
4.9
%
Interest expense, net
    
0.8
%
  
1.0
%
Net income (loss)
    
4.7
%
  
2.4
%
 

(a) The Company acquired the Conagra Chicken Division on November 23, 2003 for $635.2 including the non-cash value of common stock issued of $357.5 million. The acquisition has been accounted for as a purchase, and the results of operations for this acquisition have been included in our consolidated results of operations since the acquisition date.
  
   
(b) Fiscal 2004 had 53 weeks.
  
 
(c) Includes amortization of capitalized financing costs of approximately
  
$
2,321
  
$
1,951
  


 
 
(d) “EBITDA” is defined as the sum of net income (loss) before extraordinary charges, interest, taxes, depreciation and amortization. EBITDA is presented because it is used by us, and we believe it is frequently used by securities analysts, investors and other interested parties, in addition to and not in lieu of GAAP results, to compare the performance of companies. EBITDA is not a measurement of financial performance under generally accepted accounting principles and 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 generally accepted accounting principles. EBITDA is calculated as follows:
  

Net Income
  
$
264,979
  
$
128,340
  
Add:
             
Income Tax Expense (benefit)
    
138,544
   
80,195
 
Interest expense, net
    
43,932
   
52,129
 
Depreciation and amortization
    
134,944
   
113,788
 
Minus:
              
Amortization of capitalized financing costs
    
2,321
   
1,951
 
EBITDA
  
$
580,078
  
$
372,501
  
 

 
Pilgrim's Pride Corporation
  
Sales Segments
  
for Quarters Ended:
  
   
   
 
  
Our chicken segment and our sales of other product segment include sales of products that we produce and purchase for resale in the United States and Mexico. Both of these segments conduct separate operations in the United States and Mexico and are reported as two seprarate geographical areas. Our turkey segment includes sales of turkey products produced and purchased for resale. Our turkey operations are exclusively in the United States.
  
Inter-area sales and inter-segment sales, which are not material, are accounted for at prices comparable to normal trade customer sales. Fixed assets by segment and geographic area are those assets which are used in our operations in each segment or area. Corporate assets are included with chicken and other products. You should read this financial data in conjunction with the appropriate period financial statements and the related notes and "Management's Discussion and Analysis of Results of Operations and Financial Condition" included in our SEC filings.
  
 


(In thousands)
  
10/1/2005
 
7/2/2005
 
4/2/2005
 
1/1/2005
 
10/2/2004
 
 
 
7/3/2004
 
 
 
4/3/2004
 
1/3/2004 (a)(d)
  
Net Sales to Customers:
                                                    
 
 
  
 
 
Chicken:
                                                              
United States 
  
$
1,162,553
  
$
1,133,443
  
$
1,090,782
  
$
1,024,491
  
$
1,158,466
        
$
1,121,073
        
$
1,068,200
  
$
743,967
  
Mexico 
    
101,151
   
114,377
   
90,888
   
96,937
   
93,797
         
90,718
         
88,957
   
88,970
 
 Sub-total
    
1,263,704
   
1,247,820
   
1,181,670
   
1,121,428
   
1,252,263
         
1,211,791
         
1,157,157
   
832,937
 
Turkey
    
50,198
   
37,538
   
37,328
   
79,774
   
72,532
         
66,286
         
54,110
   
93,324
 
Other Products:
                                                              
United States 
    
163,585
   
148,938
   
148,139
   
165,394
   
156,155
         
163,666
         
166,805
   
113,465
 
Mexico 
    
5,181
   
5,743
   
8,184
   
1,651
   
5,504
         
6,251
         
6,835
   
4,642
 
 Sub-total
    
168,766
   
154,681
   
156,323
   
167,045
   
161,659
         
169,917
         
173,640
   
118,107
 
 Total
  
$
1,482,668
  
$
1,440,039
  
$
1,375,321
  
$
1,368,247
  
$
1,486,454
        
$
1,447,994
        
$
1,384,907
  
$
1,044,368
  
                                                               
Operating Income:
                                                              
Chicken:
                                                              
United States 
  
$
113,882
  
$
116,774
  
$
86,516
  
$
88,607
  
$
121,863
        
$
105,579
        
$
56,930
  
$
45,322
  
Mexico 
    
7,912
   
17,823
   
8,892
   
5,182
   
(688
)
        
(2,413
)
        
1,779
   
(6,297
)
 Sub-total
    
121,794
   
134,597
   
95,408
   
93,789
   
121,175
         
103,166
         
58,709
   
39,025
 
Turkey
    
(6,053
)
  
(1,914
)
  
(9,924
)
  
(4,765
)
  
(15,432
)
  
(b)(c
)
  
(78,121
)
  
(b
)
  
(11,341
)
  
(15,760
)
Other Products
                                                              
United States 
    
2,966
   
2,215
   
1,520
   
1,549
   
5,076
         
11,351
         
12,856
   
6,686
 
Mexico 
    
1,142
   
1,095
   
1,951
   
442
   
1,243
         
721
         
1,218
   
851
 
 Sub-total
    
4,108
   
3,310
   
3,471
   
1,991
   
6,319
         
12,072
         
14,074
   
7,537
 
Non-recurring recoveries 
    
-
   
-
   
-
   
-
   
23,815
         
-
         
68
   
8
 
 Total
  
$
119,849
  
$
135,993
  
$
88,955
  
$
91,015
  
$
135,877
        
$
37,117
        
$
61,510
  
$
30,810
  
                                                               
Depreciation and Amortization: (e)
                                                              
Chicken:
                                                              
United States 
  
$
35,082
  
$
24,331
  
$
28,496
  
$
24,806
  
$
20,050
        
$
23,037
        
$
26,897
  
$
19,388
  
Mexico 
    
2,996
   
3,015
   
3,027
   
3,098
   
3,018
         
3,027
         
2,990
   
3,182
 
 Sub-total
    
38,078
   
27,346
   
31,523
   
27,904
   
23,068
         
26,064
         
29,887
   
22,570
 
Turkey
    
954
   
1,622
   
776
   
767
   
1,040
         
1,898
         
1,873
   
2,076
 
Other Products
                                                              
United States 
    
1,615
   
1,419
   
1,443
   
1,359
   
1,524
         
1,124
         
1,291
   
1,229
 
Mexico 
    
34
   
34
   
35
   
35
   
36
         
36
         
36
   
36
 
 Sub-total
    
1,649
   
1,453
   
1,478
   
1,394
   
1,560
         
1,160
         
1,327
   
1,265
 
 Total
  
$
40,681
  
$
30,421
  
$
33,777
  
$
30,065
  
$
25,668
        
$
29,122
        
$
33,087
  
$
25,911
  
                                                               
Total Assets:
                                                              
Chicken:
                                                              
United States 
  
$
1,665,168
  
$
1,613,503
  
$
1,474,550
  
$
1,478,884
  
$
1,437,096
        
$
1,225,669
        
$
1,237,538
  
$
1,535,439
  
Mexico 
    
291,055
   
231,497
   
243,980
   
260,026
   
274,156
         
304,416
         
318,226
   
326,879
 
 Sub-total
    
1,956,223
   
1,845,000
   
1,718,530
   
1,738,910
   
1,711,252
         
1,530,085
         
1,555,764
   
1,862,318
 
Turkey
    
77,319
   
92,332
   
93,860
   
105,692
   
122,163
         
203,792
         
203,923
   
175,807
 
Other Products
                                                              
United States 
    
478,798
   
463,142
   
454,817
   
432,693
   
410,045
         
397,756
         
385,878
   
156,405
 
Mexico 
    
2,010
   
2,376
   
2,329
   
2,541
   
2,529
         
2,596
         
2,483
   
2,772
 
 Sub-total
    
480,808
   
465,518
   
457,146
   
435,234
   
412,574
         
400,352
         
388,361
   
159,177
 
 Total
  
$
2,514,350
  
$
2,402,850
  
$
2,269,536
  
$
2,279,836
  
$
2,245,989
        
$
2,134,229
        
$
2,148,048
  
$
2,197,302
  
                                                               
Capital Expenditures:
                                                              
Chicken:
                                                              
United States 
  
$
23,033
  
$
34,192
  
$
25,825
  
$
18,962
  
$
12,119
        
$
14,739
        
$
11,521
  
$
14,872
  
Mexico 
    
954
   
1,494
 
$
1,089
  
$
1,387
  
$
2,750
        
$
1,961
        
$
2,236
  
$
1,693
  
 Sub-total
    
23,987
   
35,686
   
26,914
   
20,349
   
14,869
         
16,700
         
13,757
   
16,565
 
Turkey
    
237
   
547
 
$
273
  
$
2,820
  
$
1,376
        
$
1,669
        
$
2,143
  
$
2,963
  
Other Products
                                                              
United States 
    
2,180
   
1,726
   
771
   
955
   
3,471
         
1,553
         
3,529
   
1,024
 
Mexico 
    
35
   
35
   
36
   
36
   
23
         
-
         
-
   
-
 
 Sub-total
    
2,215
   
1,761
   
807
   
991
   
3,494
         
1,553
         
3,529
   
1,024
 
 Total
  
$
26,439
  
$
37,994
  
$
27,994
  
$
24,160
  
$
19,739
        
$
19,922
        
$
19,429
  
$
20,552
  
 

(a) The acquisition of the Conagra Chicken Division has been accounted for as a purchase, and the results of operations for this acquisition have been included in our consolidated results of operations since November 23, 2003, the acquisition date.
                                                  
                                                   
(b) Includes $8.2 million and $63.9 million in restructuring and related charges for the three months ended October 2, 2004 and July 3, 2004.
                                                  
                                                   
(c) The three months ended October 2, 2004 includes the non-recurring recovery of $23.8 million representing the gain recognized on the insurance proceeds received in connection with the October 2002 recall.
                                                  
                                                   
(d) The Fiscal quarter ended 01/03/04 had 14 weeks.
                                                  
                                                   
(e) Includes amortization of capitalized financing costs of approximately
 
$
581
  
$
590
  
$
580
  
$
570
  
$
535
  
$
409
  
$
488
  
$
519
  
 
 
 
Pilgrim's Pride Corporation
  
Sales Segments
  
for the Fiscal Years Ended:
  
   
   
 
  
Our chicken segment and our sales of other product segment include sales of products that we produce and purchase for resale in the United States and Mexico. Both of these segments conduct separate operations in the United States and Mexico and are reported as two seprarate geographical areas. Our turkey segment includes sales of turkey products produced and purchased for resale. Our turkey operations are exclusively in the United States.
  
Inter-area sales and inter-segment sales, which are not material, are accounted for at prices comparable to normal trade customer sales. Fixed assets by segment and geographic area are those assets which are used in our operations in each segment or area. Corporate assets are included with chicken and other products. You should read this financial data in conjunction with the appropriate period financial statements and the related notes and "Management's Discussion and Analysis of Results of Operations and Financial Condition" included in our SEC filings.
 

   
10/1/2005
  
10/2/2004 (a) (c)
     
(In thousands) 
  
 
          
               
Net Sales to Customers:
                    
Chicken:
                    
United States 
  
$
4,411,269
  
$
4,091,706
        
Mexico 
    
403,353
   
362,442
       
 Sub-total
    
4,814,622
   
4,454,148
       
Turkey
    
204,838
   
286,252
       
Other Products:
                    
United States 
    
626,056
   
600,091
       
Mexico 
    
20,759
   
23,232
       
 Sub-total
    
646,815
   
623,323
       
 Total
  
$
5,666,275
  
$
5,363,723
        
                     
Operating Income:
                    
Chicken:
    
   
       
United States 
  
$
405,662
  
$
329,694
        
Mexico 
    
39,809
   
(7,619
)
      
 Sub-total
    
445,471
   
322,075
       
Turkey
    
(22,539
)
  
(120,654
)
  
(b
)
Other Products:
                    
United States 
    
8,250
   
35,969
       
Mexico 
    
4,630
   
4,033
       
 Sub-total
    
12,880
   
40,002
       
Non-recurring recoveries 
    
-
   
23,891
       
 Total
  
$
435,812
  
$
265,314
        
                     
Depreciation and Amortization: (d)
                    
Chicken:
                    
United States 
  
$
116,618
  
$
89,430
        
Mexico 
    
9,244
   
12,217
       
 Sub-total
    
125,862
   
101,647
       
Turkey
    
3,343
   
6,887
       
Other Products:
                    
United States 
    
5,601
   
5,110
       
Mexico 
    
138
   
144
       
 Sub-total
    
5,739
   
5,254
       
 Total
  
$
134,944
  
$
113,788
        
                     
Total Assets:
                    
Chicken:
                    
United States 
  
$
1,670,827
  
$
1,439,450
        
Mexico 
    
291,055
   
274,156
       
 Sub-total
    
1,961,882
   
1,713,606
       
Turkey
    
77,319
   
122,163
       
Other Products:
                    
United States 
    
473,139
   
407,691
       
Mexico 
    
2,010
   
2,529
       
 Sub-total
    
475,149
   
410,220
       
 Total
  
$
2,514,350
  
$
2,245,989
        
                     
Capital Expenditures:
                    
Chicken:
                    
United States 
  
$
102,584
  
$
54,442
        
Mexico 
    
4,924
   
8,640
       
 Sub-total
    
107,508
   
63,082
       
Turkey
    
3,604
   
8,151
       
Other Products:
                    
United States 
    
5,334
   
8,386
       
Mexico 
    
142
   
23
       
 Sub-total
    
5,476
   
8,409
       
 Total
  
$
116,588
  
$
79,642
        

(a) The acquisition of the Conagra Chicken Division has been accounted for as a purchase, and the results of operations for this acquisition have been included in our consolidated results of operations since November 23, 2003, the acquisition date.
  
   
(b) Included in fiscal 2004 are the restructuring charges totaling $72.1 million offset somewhat by the non-recurring recovery of $23.8 million representing the gain recognized on the insurance proceeds received in connection with the October 2002 recall.
  
   
(c) Fiscal year 2004 had 53 weeks. 
  
 
(d) Includes amortization of capitalized financing costs of approximately
 
$
2,321
  
$
1,951
    
 
  
 
 
Pilgrim's Pride Corporation
  
Statistical Management Discussion and Analysis
  
for quarters ended:
  
   
Our Statistical Management Discussion and Analysis data is derived from our financial statements and internal reports. Historical results should not be taken as necessarily indicative of the results that may be expected for any future period. You should read this financial data in conjunction with the appropriate period financial statements and the related notes and "Management's Discussion and Analysis of Results of Operations and Financial Condition" included in our SEC filings.
  
 

   
10/01/05
 
07/02/05
 
04/02/05
 
 
 
01/01/05
 
10/02/04
 
 
 
7/3/2004(a)
 
 
 
4/3/2004(b)
 
 
 
1/3/2004 (c)(e)
  
U.S. Chicken
                                                                          
                                                                           
U.S. Chicken Sales (000's)
  
$
1,162,553
  
$
1,133,443
  
$
1,090,782
        
$
1,024,491
  
$
1,158,466
        
$
1,121,073
        
$
1,068,201
        
$
743,966
  
U.S. Chicken Sales divided by U.S.Chicken Net Pounds Produced
  
$
0.8162
  
$
0.7832
  
$
0.8156
        
$
0.7702
  
$
0.8168
        
$
0.8421
        
$
0.8257
        
$
0.7905
  
U.S. Chicken Sales divided by U.S.Chicken Pounds Sold
  
$
0.8940
  
$
0.8754
  
$
0.8545
        
$
0.8305
  
$
0.8927
        
$
0.9392
        
$
0.8500
        
$
0.8161
  
                                                                           
U.S. Chicken Net Pounds Produced (000's)
    
1,424,405
   
1,447,179
   
1,337,413
         
1,330,166
   
1,418,228
         
1,331,322
         
1,293,637
         
941,181
 
U.S. Chicken Pounds Sold (000's)
    
1,300,368
   
1,294,820
   
1,276,456
         
1,233,549
   
1,297,665
         
1,193,645
         
1,256,635
         
911,654
 
                                                                           
U.S. Chicken Operating Income (000's) (g)
    
113,765
   
121,214
   
82,076
         
88,607
   
145,679
         
105,579
         
56,999
         
45,320
 
U.S. Chicken Operating Income as a percent of U.S. Chicken Sales
    
9.79
%
  
10.69
%
  
7.52
%
        
8.65
%
  
12.58
%
        
9.42
%
        
5.34
%
        
6.09
%
                                                                           
Turkey
                                                                          
                                                                           
U.S. Turkey Sales (000's)
    
50,198
   
37,538
   
37,328
         
79,774
   
72,532
         
66,286
         
54,110
         
93,324
 
U.S. Turkey Sales divided by U.S. Turkey Net Pounds Produced
  
$
1.3996
  
$
1.0338
  
$
1.0938
        
$
2.0612
  
$
0.9524
        
$
0.7293
        
$
0.5853
        
$
0.8998
  
U.S. Turkey Sales divided by U.S. Turkey Pounds Sold
  
$
0.8654
  
$
0.9231
  
$
1.1362
        
$
0.9822
  
$
0.9145
        
$
1.0017
        
$
0.9953
        
$
0.8459
  
                                                                           
U.S. Turkey Operating Income (000's)
    
(5,936
)
  
(6,354
)
  
(5,484
)
        
(4,765
)
  
(15,432
)
  
(d
)
  
(78,121
)
  
(d
)
  
(11,341
)
        
(15,760
)
U.S. Turkey Operating Income as a percent of U.S. Turkey Sales
    
-11.83
%
  
-16.93
%
  
-14.69
%
        
-5.97
%
  
-21.28
%
        
-117.85
%
        
-20.96
%
        
-16.89
%
                                                                           
U.S. Turkey Net Pounds Produced (000's)
    
35,865
   
36,309
   
34,128
         
38,702
   
76,158
         
90,889
         
92,456
         
103,718
 
U.S. Turkey Pounds Sold (000's)
    
58,004
   
40,665
   
32,852
         
81,216
   
79,316
         
66,175
         
54,366
         
110,319
 
                                                                           
                                                                           
U.S. Other
                                                                          
                                                                           
U.S. Other Sales
    
163,585
   
148,938
   
148,139
         
165,394
   
156,155
         
163,666
         
166,805
         
113,465
 
                                                                           
U.S. Other Operating Income (g)
    
2,966
   
2,215
   
1,520
         
1,549
   
5,076
         
11,351
         
12,856
         
6,686
 
U.S. Distribution and Other Operating Income as a percent of U.S. Distribution Sales
    
1.8
%
  
1.5
%
  
1.0
%
        
0.9
%
  
3.3
%
        
6.9
%
        
7.7
%
        
5.9
%
                                                                           
U.S. Summary
                                                                          
                                                                           
U.S. Sales (000's)
    
1,376,336
   
1,319,919
   
1,276,249
         
1,269,659
   
1,387,153
         
1,351,025
         
1,289,116
         
950,755
 
U.S. Cost of Sales (000's)
    
1,192,801
   
1,128,094
   
1,133,538
         
1,120,286
   
1,198,776
         
1,181,431
         
1,174,725
         
874,643
 
U.S. Gross Margin (000's)
    
183,535
   
191,825
   
142,711
         
149,373
   
188,377
         
169,594
         
114,391
         
76,112
 
U.S. Gross Margin as a percent of U.S. Sales
    
13.34
%
  
14.53
%
  
11.18
%
        
11.76
%
  
13.58
%
        
12.55
%
        
8.87
%
        
8.01
%
                                                                           
U.S. Selling, General and Administrative Expenses (000's)
    
72,740
   
75,587
   
69,039
         
63,982
   
68,692
         
66,880
         
55,945
         
39,865
 
U.S. Selling, General and Administrative Expenses as a percent of U.S Sales
    
5.29
%
  
5.73
%
  
5.41
%
        
5.04
%
  
4.68
%
        
4.95
%
        
4.34
%
        
4.19
%
                                                                           
Restructuring and Related Charges - Turkey
    
-
   
(837
)
  
(4,440
)
        
-
   
(8,178
)
        
63,905
                         
Insurance Proceeds - Turkey
    
-
   
-
   
-
         
-
   
23,815
                                     
Vitamin Settlements (000's)
                
-
         
-
   
-
                     
68
         
8
 
                                                                           
U.S. Operating Income (000's)
    
110,795
   
117,075
   
78,112
         
85,391
   
135,322
   
(d
)
  
38,809
   
(d
)
  
58,514
         
36,255
 
U.S. Operating Income as a percent of U.S. Sales
    
8.05
%
  
8.87
%
  
6.12
%
        
6.73
%
  
9.76
%
        
2.87
%
        
4.54
%
  
#
    
3.81
%
                                                                           
Mexico Chicken
                                                                          
                                                                           
Mexico Chicken Sales (000's)
    
101,151
   
114,377
   
90,888
         
96,937
   
93,797
         
90,718
         
88,957
         
88,970
 
Mexico Chicken Sales divided by Mexico Chicken Net Pounds Produced
  
$
0.6638
  
$
0.6925
  
$
0.6066
        
$
0.6073
  
$
0.5772
        
$
0.5851
        
$
0.5760
        
$
0.5057
  
                                                                           
Mexico Net Pounds Produced (000's)
    
152,373
   
165,156
   
149,844
         
159,615
   
162,490
         
155,038
         
154,432
         
175,922
 
                                                                           
Mexico Other
                                                                          
                                                                           
Mexico Other Sales (000's)
    
5,181
   
5,743
   
8,184
         
1,651
   
5,504
         
6,251
         
6,835
         
4,642
 
                                                                           
Mexico Summary
                                                                          
                                                                           
Mexico Sales (000's)
    
106,332
   
120,120
   
99,072
         
98,588
   
99,301
         
96,969
         
95,792
         
93,612
 
Mexico Cost of Sales (000's)
    
89,062
   
93,562
   
82,167
         
86,843
   
92,546
         
92,360
         
87,314
         
92,620
 
Mexico Gross Margin (000's)
    
17,270
   
26,558
   
16,905
         
11,745
   
6,755
         
4,609
         
8,478
         
992
 
Mexico Gross Margin as a percent of Mexico Sales
    
16.2
%
  
22.1
%
  
17.1
%
        
11.9
%
  
6.8
%
        
4.8
%
        
8.9
%
        
1.1
%
                                                                           
Mexico Selling, General and Administrative Expenses (000's)
    
8,216
   
7,640
   
6,062
         
6,121
   
6,200
         
6,301
         
5,481
         
6,438
 
Mexico Selling, General and Administrative Expenses as a percent of Mexico Sales
    
7.7
%
  
6.4
%
  
6.1
%
  
#
    
6.2
%
  
6.2
%
        
6.5
%
        
5.7
%
        
6.9
%
                                                                           
Mexico Operating Income (000's)
    
9,054
   
18,918
   
10,843
         
5,624
   
555
         
(1,692
)
        
2,997
         
(5,446
)
Mexico Operating Income as a percent of Mexico Sales
    
8.5
%
  
15.7
%
  
10.9
%
        
5.7
%
  
0.6
%
        
-1.7
%
        
3.1
%
        
-5.8
%
                                                                           
Consolidated Operations
                                                                          
Chicken Operations:
                                                                          
Chicken Sales from all Divisions (000's)
    
1,263,704
   
1,247,820
   
1,181,670
         
1,121,428
   
1,252,263
         
1,211,791
         
1,157,158
         
832,936
 
Chicken Sales from all divisions divided by Chicken Net Pounds Produced from all Divisions
  
$
0.8014
  
$
0.7739
  
$
0.7945
        
$
0.7527
  
$
0.7922
        
$
0.8153
        
$
0.7991
        
$
0.7456
  
Chicken Sales from all divisions divided by Chicken Pounds Sold from all Divisions
  
$
0.8699
  
$
0.8547
  
$
0.8285
        
$
0.7794
  
$
0.8576
        
$
0.8985
        
$
0.8201
        
$
0.7659
  
                                                                           
Chicken Net Pounds Produced from all Divisions (000's)
    
1,576,778
   
1,612,335
   
1,487,257
         
1,489,781
   
1,580,718
         
1,486,360
         
1,448,069
         
1,117,103
 
Chicken Pounds Sold from all Divisions (000's)
    
1,452,741
   
1,459,976
   
1,426,300
         
1,438,781
   
1,460,155
         
1,348,683
         
1,411,067
         
1,087,576
 
                                                                           
                                                                           
Turkey Operations:
                                                                          
U.S. Turkey Sales (000's)
    
50,198
   
37,538
   
37,328
         
79,774
   
72,532
         
66,286
         
54,110
         
93,324
 
U.S. Turkey Sales divided by U.S. Turkey Net Pounds Produced
  
$
1.3996
  
$
1.0338
  
$
1.0938
        
$
2.0612
  
$
0.9524
        
$
0.7293
        
$
0.5853
        
$
0.8998
  
U.S. Turkey Sales divided by U.S. Turkey Pounds Sold
  
$
0.8654
  
$
0.9231
  
$
1.1362
        
$
0.9822
  
$
0.9145
        
$
1.0017
        
$
1.5745
        
$
0.8459
  
                                                                           
U.S. Turkey Net Pounds Produced (000's)
    
35,865
   
36,309
   
34,128
         
38,702
   
76,158
         
90,889
         
92,456
         
103,718
 
U.S. Turkey Pounds Sold (000's)
    
58,004
   
40,665
   
32,852
         
81,216
   
79,316
         
66,175
         
34,366
         
110,319
 
                                                                           
                                                                           
Other Operations:
                                                                          
Other Sales (000's)
    
168,766
   
154,681
   
156,323
         
167,045
   
161,659
         
169,917
         
173,640
         
118,107
 
                                                                           
                                                                           
Totals All Operations:
                                                                          
Total Net Sales (000's)
    
1,482,668
   
1,440,039
   
1,375,321
         
1,368,247
   
1,486,454
         
1,447,994
         
1,384,908
         
1,044,367
 
Total Cost of Sales (000's)
    
1,281,863
   
1,221,656
   
1,215,705
         
1,207,129
   
1,291,322
         
1,273,791
         
1,262,039
         
967,263
 
Gross Margin from all operations (000's)
    
200,805
   
218,383
   
164,056
         
161,118
   
191,413
         
174,203
         
122,869
         
77,104
 
Gross Margin from all operations as a percent of Total Net Sales
    
13.54
%
  
15.17
%
  
11.93
%
        
11.78
%
  
12.88
%
        
12.03
%
        
8.87
%
        
7.38
%
                                                                           
Total Selling, General and Administrative Expenses (000's)
    
80,956
   
83,227
   
75,101
         
70,103
   
74,892
         
73,181
         
61,426
         
46,303
 
Total Selling, General and Administrative Expenses as a percent of Total Net Sales
    
5.46
%
  
5.78
%
  
5.46
%
        
5.12
%
  
5.04
%
        
5.05
%
        
4.44
%
        
4.43
%
                                                                           
Restructuring and Related Charges - Turkey
    
-
   
(837
)
  
(4,440
)
        
-
   
8,178
         
63,905
                         
Insurance Proceeds - Turkey
    
-
   
-
   
-
         
-
   
23,815
                                     
                                                                           
Operating Income from all operations (000's)
    
119,849
   
135,993
   
93,395
         
91,015
   
132,158
   
(d
)
  
37,117
   
(d
)
  
61,443
         
30,802
 
Operating Income from all operations as a percent of Total Net Sales
    
8.08
%
  
9.44
%
  
6.79
%
        
6.65
%
  
8.89
%
        
2.56
%
        
4.44
%
        
2.95
%
                                                                           
Avian Influenza Reimbursement (000's)
   
-
   
-
   
-
         
-
   
-
         
-
         
-
             
Vitamin Settlements (000's)
    
-
   
-
   
-
         
-
   
-
         
-
         
68
         
8
 
Total Adjustments (000'S)
    
-
   
-
   
-
         
-
   
-
         
-
         
68
         
8
 
                                                                           
Consolidated Adjusted Operating Income (000's)
    
119,849
   
135,993
   
88,955
         
91,015
   
132,158
         
37,117
         
61,511
         
30,810
 
Consolidated Adjusted Operating Income as a percent of Total Net Sales
    
8.08
%
  
9.44
%
  
6.47
%
        
6.65
%
  
8.89
%
        
2.56
%
        
4.44
%
        
2.95
%

 
(a) The acquisition of the Conagra Chicken Division has been accounted for as a purchase, and the results of operations for this acquisition have been included in our consolidated results of operations since November 23, 2003, the acquisition date. These results include net sales of $546.2 million and $81.5 million of Chicken Products and Other Products, respectively, and production of 669.9 million pounds of chicken products.
  

 
(b) The acquisition of the Conagra Chicken Division has been accounted for as a purchase, and the results of operations for this acquisition have been included in our consolidated results of operations since November 23, 2003, the acquisition date. These results include net sales of $524.4 million and $102.4 million of Chicken Products and Other Products, respectively, and production of 962.6 million pounds of chicken products.
  
 

(c) The acquisition of the Conagra Chicken Division has been accounted for as a purchase, and the results of operations for this acquisition have been included in our consolidated results of operations since November 23, 2003, the acquisition date. These results include net sales of $209.9 million and $49.2 million of Chicken Products and Other Products, respectively, and production of 286.1 million pounds of chicken products.
  
 

(d) Includes Turkey Restructuring and Related Charges of $8.2 million and $63.9 million.in quarters ended 10/2/2004 and 7/3/2004.
  

(e) 14 week Quarter.
                                                              
 
 
 
Pilgrim's Pride Corporation
  
Statistical Management Discussion and Analysis
  
for the fiscal years ended:
  
   
Our Statistical Management Discussion and Analysis data is derived from our financial statements and internal reports. Historical results should not be taken as necessarily indicative of the results that may be expected for any future period. You should read this financial data in conjunction with the appropriate period financial statements and the related notes and "Management's Discussion

   
10/01/05
 
10/2/2004 (a)(c)
  
U.S. Chicken
              
               
U.S. Chicken Sales (000's)
  
$
4,411,269
  
$
4,091,706
  
U.S. Chicken Sales divided by U.S.Chicken Net Pounds Produced
  
$
0.7964
  
$
0.8209
  
U.S. Chicken Sales divided by U.S.Chicken Pounds Sold
  
$
0.8641
  
$
0.8781
  
               
U.S. Chicken Net Pounds Produced (000's)
    
5,539,163
   
4,984,368
 
U.S. Chicken Pounds Sold (000's)
    
5,105,193
   
4,659,599
 
               
U.S. Chicken Operating Income (000's)
   
405,662
   
353,577
 
U.S. Chicken Operating Income as a percent of U.S. Chicken Sales
    
9.20
%
  
8.64
%
               
Turkey
              
               
U.S. Turkey Sales (000's)
    
204,838
   
286,252
 
U.S. Turkey Sales divided by U.S. Turkey Net Pounds Produced
  
$
1.4126
  
$
0.7881
  
U.S. Turkey Sales divided by U.S. Turkey Pounds Sold
  
$
0.9629
  
$
0.9229
  
               
U.S. Turkey Operating Income (000's)
    
(22,539
)
  
(120,654
)
U.S. Turkey Operating Income as a percent of U.S. Turkey Sales
    
-11.00
%
  
-42.15
%
               
U.S. Turkey Net Pounds Produced (000's)
    
145,004
   
363,221
 
U.S. Turkey Pounds Sold (000's)
    
212,737
   
310,176
 
               
               
U.S. Other
              
               
U.S. Other Sales
    
626,056
   
600,091
 
               
U.S. Other Operating Income
   
8,250
   
35,969
 
U.S. Distribution and Other Operating Income as a percent of U.S. Distribution Sales
    
1.3
%
  
6.0
%
               
U.S. Summary
              
               
U.S. Sales (000's)
    
5,242,163
   
4,978,049
 
U.S. Cost of Sales (000's)
    
4,574,719
   
4,429,575
 
U.S. Gross Margin (000's)
    
667,444
   
548,474
 
U.S. Gross Margin as a percent of U.S. Sales
    
12.73
%
  
11.02
%
               
U.S. Selling, General and Administrative Expenses (000's)
    
281,348
   
231,382
 
U.S. Selling, General and Administrative Expenses as a percent of U.S Sales
    
5.37
%
  
4.65
%
               
Restructuring and Related Charges - Turkey
    
(5,277
)
  
(72,083
)
Insurance Proceeds - Turkey
    
0
   
23,815
 
Vitamin Settlements (000's)
    
-
   
76
 
               
U.S. Operating Income (000's)
    
391,373
   
268,900
 
U.S. Operating Income as a percent of U.S. Sales
    
7.47
%
  
5.40
%
               
Mexico Chicken
              
               
Mexico Chicken Sales (000's)
    
403,353
   
362,442
 
Mexico Chicken Sales divided by Mexico Chicken Net Pounds Produced
  
$
0.6433
  
$
0.5594
  
               
Mexico Net Pounds Produced (000's)
    
626,988
   
647,882
 
               
Mexico Other
              
               
Mexico Other Sales (000's)
    
20,759
   
23,232
 
               
Mexico Summary
              
               
Mexico Sales (000's)
    
424,112
   
385,674
 
Mexico Cost of Sales (000's)
    
351,634
   
364,840
 
Mexico Gross Margin (000's)
    
72,478
   
20,834
 
Mexico Gross Margin as a percent of Mexico Sales
    
17.1
%
  
5.4
%
               
Mexico Selling, General and Administrative Expenses (000's)
    
28,039
   
24,420
 
Mexico Selling, General and Administrative Expenses as a percent of Mexico Sales
    
6.6
%
  
6.3
%
               
Mexico Operating Income (000's)
    
44,439
   
(3,586
)
Mexico Operating Income as a percent of Mexico Sales
    
10.5
%
  
-0.9
%
               
Consolidated Operations
              
Chicken Operations:
              
Chicken Sales from all Divisions (000's)
    
4,814,622
   
4,454,148
 
Chicken Sales from all divisions divided by Chicken Net Pounds Produced from all Divisions
  
$
0.7808
  
$
0.7908
  
Chicken Sales from all divisions divided by Chicken Pounds Sold from all Divisions
  
$
0.8399
  
$
0.8392
  
               
Chicken Net Pounds Produced from all Divisions (000's)
    
6,166,151
   
5,632,250
 
Chicken Pounds Sold from all Divisions (000's)
    
5,732,181
   
5,307,481
 
               
               
Turkey Operations:
              
U.S. Turkey Sales (000's)
    
204,838
   
286,252
 
U.S. Turkey Sales divided by U.S. Turkey Net Pounds Produced
  
$
1.4126
  
$
0.7881
  
U.S. Turkey Sales divided by U.S. Turkey Pounds Sold
  
$
0.9629
  
$
0.9229
  
               
U.S. Turkey Net Pounds Produced (000's)
    
145,004
   
363,221
 
U.S. Turkey Pounds Sold (000's)
    
212,737
   
310,176
 
               
               
Other Operations:
              
Other Sales (000's)
    
646,815
   
623,323
 
               
               
Totals All Operations:
              
Total Net Sales (000's)
    
5,666,275
   
5,363,723
 
Total Cost of Sales (000's)
    
4,926,353
   
4,794,415
 
Gross Margin from all operations (000's)
    
739,922
   
569,308
 
Gross Margin from all operations as a percent of Total Net Sales
    
13.06
%
  
10.61
%
               
Total Selling, General and Administrative Expenses (000's)
    
309,387
   
255,802
 
Total Selling, General and Administrative Expenses as a percent of Total Net Sales
    
5.46
%
  
4.77
%
               
Restructuring and Related Charges - Turkey
    
(5,277
)
  
72,083
 
Insurance Proceeds - Turkey
    
0
   
23,815
 
               
Operating Income from all operations (000's)
    
435,812
   
265,238
 
Operating Income from all operations as a percent of Total Net Sales
    
7.69
%
  
4.95
%
               
Avian Influenza Reimbursement (000's)
   
-
   
-
 
Vitamin Settlements (000's)
    
-
   
76
 
Total Adjustments (000'S)
    
-
   
76
 
               
Consolidated Adjusted Operating Income (000's)
    
435,812
   
265,314
 
Consolidated Adjusted Operating Income as a percent of Total Net Sales
    
7.69
%
  
4.95
%

(a) The acquisition of the Conagra Chicken Division has been accounted for as a purchase, and the results of operations for this acquisition have been included in our consolidated results of operations since November 23, 2003, the acquisition date.
 
(b) Includes Turkey restructuring and related charges of $72.1 million offset somewhat by the non-recurring recovery of $23.8 million representing the gain recognized on the insurance proceeds received in connection with the October 2002 recall..
 
(c) Fiscal year ended 10/02/04 contains 53 weeks