EX-99.1 2 ex99_1.htm EX99_1 ex99_1.htm

Pilgrim's Pride Corporation
  
Net Sales by Primary Market Line
  
for the Three Months 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.
  


 
(in thousands)
  
Mar 28,
    
Mar 28,
  
   
2010
    
2009
  
             
Chicken Sales:
            
  United States
            
        Prepared Foods:
            
             Foodservice
   $ 436,291     $ 443,530  
             Retail
   $ 126,123     $ 113,399  
                  Total Prepared Foods
   $ 562,415     $ 556,929  
                 
        Fresh Chicken:
                
             Foodservice
   $ 438,405     $ 543,623  
             Retail
   $ 248,476     $ 247,022  
                  Total Fresh Chicken
   $ 686,880     $ 790,646  
        Export and Other
                
           Export:
                
             Prepared Foods
   $ 16,683     $ 20,471  
             Chicken
   $ 87,499     $ 103,970  
             Total Export (d)
   $ 104,183     $ 124,441  
          Other Chicken By Products
   $ 3,541     $ 4,277  
                  Total Export and Other
   $ 107,723     $ 128,718  
                  Total U.S. Chicken
   $ 1,357,018     $ 1,476,293  
                 
    Mexico:
   $ 138,918     $ 99,874  
                  Total Chicken Sales
   $ 1,495,936     $ 1,576,167  
                 
                  Total Prepared Foods
   $ 579,098     $ 577,400  
                 
Sale of Other Products
          
                                U.S.
   $ 138,595     $ 114,774  
                                Mexico
   $ 8,387     $ 7,161  
                  Total Other Products
   $ 146,982     $ 121,935  
Total Net Sales
   $ 1,642,918     $ 1,698,102  

Chicken Sales:
            
  U.S. Chicken Sales:
            
        Prepared Foods:
            
             Foodservice
     32.2 %     30.1 %
             Retail
     9.3 %     7.7 %
                  Total Prepared Foods
     41.5 %     37.8 %
                 
        Fresh Chicken:
                
             Foodservice
     32.3 %     36.8 %
             Retail
     18.3 %     16.7 %
                  Total Fresh Chicken
     50.6 %     53.5 %
        Export and Other
                
           Export:
                
             Prepared Foods
     1.2 %     1.4 %
             Chicken
     6.4 %     7.0 %
             Total Export
     7.6 %     8.4 %
           Other Chicken By Products
     0.3 %     0.3 %
                  Total Export and Other(d)
     7.9 %     8.7 %
                  Total U.S. Chicken
     100.0 %     100.0 %

 
 
 
 
Pilgrim's Pride Corporation
                              
Selected Financial Data
                              
for the Three Months 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.
 

   
03/28/10
    
03/28/09
  
(in thousands except per share data)
        
Income Statement Data:
            
Net sales
   $ 1,642,918     $ 1,698,102  
Non-recurring recoveries
     -       -  
Asset impairment and restructuring expense
     -       -  
Gross margin
     52,019       78,743  
Goodwill Impairment
     -       -  
Selling, general and administrative expenses
     48,601       58,898  
Turkey restructuring and related costs
     35,819       (435 )
Operating income (loss)
     (32,401 )     20,280  
Interest expense, net
     27,873       43,620  
Miscellaneous, net
     (2,325 )     (1,876 )
Loss on early extinguishment of debt
     -       -  
Income (loss) before restructuring & income taxes from continuing operations
     (57,949 )     (21,464 )
Restructuring items, net
     20,719       35,355  
Income tax expense (benefit)
     (33,304 )     2,347  
Income (loss) from continuing operations
     (45,364 )     (59,166 )
Extraordinary charge - net of tax
     -       -  
Income(loss) from operation of discontinued business, net of tax
     -       25  
Gain on sale of discontinued business, net of tax
     -       -  
Net income (loss) attributable to noncontrolling interest
     183       (376 )
Net income (loss)
   $ (45,547 )   $ (58,765 )
                 
Per Common Share Data: (g)
                
Income (loss) from continuing operations
   $ (0.21 )   $ (0.79 )
Extraordinary charge - early repayment of debt
     -       -  
Income(loss) from operation of discontinued business, net of tax
     -       -  
Gain on sale of discontinued business, net of tax
     -       -  
Net Income (loss)
   $ (0.21 )   $ (0.79 )
Cash dividends
   $  -     $  -  
Book value
   $ 4.44     $ 0.87  
                 
Balance Sheet Summary:
                
Working capital
   $ 538,271     $ 713,466  
Total assets
   $ 2,887,937     $ 3,165,409  
Notes payable and current maturities of long-term debt
   $ 50,347     $ 89,792  
Long-term debt, less current maturities
   $ 1,145,755     $ 38,950  
Total debt
   $ 1,196,102     $ 2,155,248  
Senior secured debt (included in Total Debt)
   $  -     $  -  
Total stockholders' equity
   $ 950,626     $ 65,026  
                 
Cash Flow Summary:
                
Operating cash flow
   $  (4,755 )   $ (12,422 )
Depreciation & amortization (b)
   $  57,767     $ 60,513  
Capital expenditures
   $  30,890     $ 19,331  
Business acquisitions
   $  -     $    -  
Financing activities, net
   $ (152,646 )   $ 38,939  
                 
Cashflow Ratios:
                
EBITDA (b)
   $  3,009     $  45,946  
EBITDA (last four qtrs.)
   $ 332,520     $ (880,933 )
                 
Key Indicators (as a percentage of net sales):
          
Gross margin
     3.2 %     4.6 %
Selling, general and administrative expenses
     3.0 %     3.5 %
Opertaing income (loss)
     -2.0 %     1.2 %
Interest expense, net
     1.7 %     2.6 %
Net income (loss)
     -2.8 %     -3.5 %

 
(a)  Includes amortization of capitalized financing costs of approximately
                 $          3,780
  
$               1,769

(b) “EBITDA” is defined as the sum of income (loss) from continuing operations plus interest, taxes, depreciation and amortization. “Adjusted EBITDA” is defined as the sum of EBITDA plus restructuring charges and reorganization items. 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 results prepared in conformity with accounting principles generally accepted in the US (“GAAP”), to compare the performance of companies. We believe investors would be interested in our Adjusted EBITDA because this is how our management analyzes EBITDA from continuing operations. The Company also believes that Adjusted EBITDA, in combination with the Company's financial results calculated in accordance with GAAP, provides investors with additional perspective regarding the impact of certain significant items on EBITDA and facilitates a more direct comparison of its performance with its competitors. EBITDA and Adjusted EBITDA are not measurements of financial performance under GAAP. They should not be considered as an alternative to cash flow from operating activities or as a measure of liquidity or an alternative to net income as indicators of our operating performance or any other measures of performance derived in accordance with GAAP.

Net Income from continuing operations
   $ (45,547 )   $ (58,765 )
  Add:
                
       Income Tax Expense (benefit)
     (33,304 )     2,347  
       Interest expense, net
     27,873       43,620  
       Depreciation and amortization from continued operations
     57,767       60,513  
  Minus:
                
     Amortization of capitalized financing costs
     3,780       1,769  
EBITDA
   $ 3,009     $ 45,946  
   Add:
                
      Restructuring charges, net
   $ 35,819     $ (435 )
      Reorganization items, net
   $ 20,719     $ 35,252  
Adjusted EBITDA
   $ 59,547     $ 80,763  

 
 
 
Pilgrim's Pride Corporation
  
Sales Segments
  
for Three Months 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)
  
3/28/2010
    
3/28/2009
  
Net Sales to Customers:
        
Chicken:
              
United States
   $ 1,357,019     $ 1,476,292  
Mexico
     138,917       109,066  
Sub-total
     1,495,936       1,585,358  
                   
Other Products:
                
United States
     132,500       105,583  
Mexico
     8,387       7,161  
Sub-total
     146,982       112,744  
Total
 
   $ 1,642,918     $ 1,698,102  
                   
Operating Income:
                
Chicken:
                  
United States
   $ (19,269 )   $ 10,929  
Mexico
     10,636       11,804  
Sub-total
     (8,633 )     22,733  
                   
Other Products:
                
United States
     10,905       (4,739 )
Mexico
     1,146       1,851  
Sub-total
     12,051       (2,888 )
Non-recurring recoveries
     -       -  
Asset Impairment
     -       -  
Restructuring Items, net
     35,819       435  
Total
 
   $ (32,401 )   $ 20,280  
                   
Depreciation and Amortization: (a)
  
Chicken:
                  
United States
   $ 51,559     $ 54,349  
Mexico
     2,254       2,387  
Sub-total
     53,593       56,736  
                   
Other Products:
                
United States
     4,118       3,722  
Mexico
     56       55  
Sub-total
     4,174       3,777  
Total
 
   $ 57,767     $ 60,513  
                   
Total Assets:
                
Chicken:
                  
United States
   $ 2,360,558     $ 2,636,511  
Mexico
     363,320       333,767  
Sub-total
     2,723,878       2,970,278  
                   
Other Products:
                
United States
     160,682       191,488  
Mexico
     3,377       3,643  
Sub-total
     164,059       195,131  
Total
 
   $ 2,887,937     $ 3,165,409  
                   
Capital Expenditures:
          
Chicken:
                  
United States
   $ 30,533     $ 7,162  
Mexico
     11       1,754  
Sub-total
     30,544       8,916  
                   
Other Products:
                
United States
     346       10,415  
Mexico
     -       -  
Sub-total
     346       10,415  
Total
 
   $ 30,890     $ 19,331  


(a)   Includes amortization of capitalized financing costs of approximately    
                 $     3,870
  
               $        1,769