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.
 


   
Sep 26,
   
Sep 26,
 
(in thousands)
 
2010
   
2009
 
             
Chicken Sales:
           
  United States
           
        Prepared Foods:
           
             Foodservice
  $ 468,504     $ 450,489  
             Retail
  $ 105,476     $ 112,142  
                  Total Prepared Foods
  $ 573,980     $ 562,631  
                 
        Fresh Chicken:
               
             Foodservice
  $ 464,704     $ 480,017  
             Retail
  $ 265,193     $ 262,430  
                  Total Fresh Chicken
  $ 729,897     $ 742,446  
        Export and Other
               
           Export:
               
             Prepared Foods
  $ 18,929     $ 21,510  
             Chicken
  $ 99,366     $ 153,672  
             Total Export
  $ 118,295     $ 175,182  
          Other Chicken By Products
  $ 3,963     $ 3,929  
                  Total Export and Other
  $ 122,257     $ 179,111  
                  Total U.S. Chicken
  $ 1,426,135     $ 1,484,189  
                 
    Mexico:
  $ 147,412     $ 116,398  
                  Total Chicken Sales
  $ 1,573,547     $ 1,600,587  
                 
                  Total Prepared Foods
  $ 592,909     $ 584,142  
                 
Sale of Other Products
         
                                U.S.
  $ 139,051     $ 127,948  
                                Mexico
  $ 7,251     $ 7,614  
                  Total Other Products
  $ 146,303     $ 135,562  
Total Net Sales
  $ 1,719,850     $ 1,736,149  

 
 

 


   
Sep 26,
   
Sep 26,
 
   
2010
   
2009
 
             
Chicken Sales:
           
  U.S. Chicken Sales:
           
        Prepared Foods:
           
             Foodservice
    32.8 %     30.3 %
             Retail
    7.4 %     7.6 %
                  Total Prepared Foods
    40.2 %     37.9 %
                 
        Fresh Chicken:
               
             Foodservice
    32.6 %     32.3 %
             Retail
    18.6 %     17.7 %
                  Total Fresh Chicken
    51.2 %     50.0 %
        Export and Other
               
           Export:
               
             Prepared Foods
    1.3 %     1.4 %
             Chicken
    7.0 %     10.4 %
             Total Export
    8.3 %     11.8 %
           Other Chicken By Products
    0.3 %     0.3 %
                  Total Export and Other
    8.6 %     12.1 %
                  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.
 


   
Sep 26,
   
Sep 26,
 
     2010      2009  
Income Statement Data:
           
Net sales
  $ 1,719,850     $ 1,736,149  
Non-recurring recoveries
    -       -  
Asset impairment and restructuring expenses
    -       -  
Gross margin
    157,294       162,751  
Goodwill Impairment
    -       -  
Selling, general and administrative expenses
    45,096       46,086  
Turkey restructuring and related charges
    (1,006 )     -  
Operating income (loss)
    113,204       116,665  
Interest expense, net
    25,846       36,531  
Miscellaneous, net
    (1,676 )     709  
Loss on early extinguishment of debt
    -       -  
Income (loss) before income taxes from continuing operations
    89,034       79,425  
Income tax expense (benefit)
    30,512       (24,766 )
Income (loss) from continuing operations
    58,522       82,300  
Extraordinary charge - net of tax
    -       -  
Income(loss) from operation of discontinued business, net of tax
    -       -  
Gain on sale of discontinued business, net of tax
    -       -  
Less: Net income (loss) attributable to Pilgrim's Pride
  $ 596       (425 )
Net Income attributable to Pilgrim's Pride Corporation
  $ 57,926     $ 82,725  
                 
Per Common Share Data: (d)
               
Income (loss) from continuing operations
  $ 0.27     $ 1.12  
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)
  $ 0.27     $ 1.07  
Cash dividends
  $ -     $ -  
Book value
  $ 4.84     $ 2.04  
                 
Balance Sheet Summary:
               
Working capital
  $ 821,087     $ 858,030  
Total assets
  $ 3,017,981     $ 3,060,504  
Notes payable and current maturities of long-term debt
  $ 75,355     $ -  
Long-term debt, less current maturities
  $ 1,166,606     $ 41,062  
Total debt
  $ 1,241,961     $ 2,045,094  
Senior secured debt (included in Total Debt)
  $ -     $ -  
Total stockholders' equity
  $ 1,036,239     $ 150,920  
                 
Cash Flow Summary:
               
Operating cash flow
  $ 37,249     $ 87,037  
Depreciation & amortization (a)
  $ 57,924     $ 58,173  
Capital expenditures
  $ 41,594     $ 22,588  
Business acquisitions
  $ -     $ -  
Financing activities, net
  $ 3,642     $ 40,464  
                 
Cashflow Ratios:
               
EBITDA (b)
  $ 168,482     $ 150,957  
EBITDA (last four qtrs.)
  $ 315,353     $ 213,008  
                 
Key Indicators (as a percentage of net sales):
 
Gross margin
    9.1 %     9.4 %
Selling, general and administrative expenses
    2.6 %     2.7 %
Opertaing income (loss)
    6.6 %     6.7 %
Interest expense, net
    1.5 %     2.1 %
Net income (loss)
    3.4 %     4.7 %


(a) Includes amortization of capitalized financing costs of approximately
               $                      3,726   $ 1,706  

 

(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
  $ 57,926     $ 82,725  
  Add:
               
       Income Tax Expense (benefit)
    30,512       (24,766 )
       Interest expense, net
    25,846       36,531  
       Depreciation and amortization
    57,924       58,173  
  Minus:
               
     Amortization of capitalized financing costs
    3,726       1,706  
EBITDA
  $ 168,482     $ 150,957  
   Add:
               
      Restructuring charges, net
  $ 1,519     $ 12,464  
      Reorganization items, net
  $ 0     $ 21,891  
Adjusted EBITDA
  $ 170,001     $ 185,312  

 
 

 
 
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)
 
9/26/2010
   
9/26/2009
 
Net Sales to Customers:
       
Chicken:
           
United States
  $ 1,426,134     $ 1,484,189  
Mexico
    147,412       116,398  
Sub-total
    1,573,546       1,600,587  
                 
Other Products:
               
United States
    139,052       127,949  
Mexico
    7,252       7,613  
Sub-total
    146,304       135,562  
Total
  $ 1,719,850     $ 1,736,149  
                 
Operating Income:
               
Chicken:
               
United States
  $ 84,694     $ 101,099  
Mexico
    26,346       (280 )
Sub-total
    111,040       100,819  
                 
Other Products:
               
United States
    2,502       26,482  
Mexico
    1,181       1,828  
Sub-total
    3,683       28,310  
Non-recurring recoveries
    -       -  
Restructuring Items, net
    (3,531 )     (12,464 )
Total
  $ 113,204     $ 116,665  
                 
Depreciation and Amortization: (a)
 
Chicken:
               
United States
  $ 51,548     $ 51,130  
Mexico
    2,156       2,320  
Sub-total
    53,704       53,450  
                 
Other Products:
               
United States
    4,164       4,668  
Mexico
    56       55  
Sub-total
    4,220       4,723  
Total
  $ 57,924     $ 58,173  
                 
Total Assets:
               
Chicken:
               
United States
  $ 2,487,306     $ 2,542,818  
Mexico
    372,417       345,205  
Sub-total
    2,859,723       2,888,023  
                 
Other Products:
               
United States
    155,101       168,776  
Mexico
    3,157       3,705  
Sub-total
    158,258       172,481  
Total
  $ 3,017,981     $ 3,060,504  
                 
Capital Expenditures:
         
Chicken:
               
United States
  $ 39,474     $ 18,120  
Mexico
  $ 1,864     $ 233  
Sub-total
    41,338       18,353  
                 
Other Products:
               
United States
    256       4,235  
Mexico
    -       -  
Sub-total
    256       4,235  
Total
  $ 41,594     $ 22,588  
                 
 
 
(a)   Includes amortization of capitalized financing costs of approximately    
 $                     3,726
 
  $                  1,706