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8-K - FORM 8-K - PILGRIMS PRIDE CORPd249021d8k.htm

Exhibit 99.1

Supplemental Historical Financial Information

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)    Sep 25,
2011
    Sep 26,
2010
 

Chicken Sales:

    

United States

    

Prepared Foods:

    

Foodservice

   $ 412,759      $ 468,504   

Retail

   $ 100,333      $ 105,476   
  

 

 

   

 

 

 

Total Prepared Foods

   $ 513,092      $ 573,980   

Fresh Chicken:

    

Foodservice

   $ 546,755      $ 464,704   

Retail

   $ 265,099      $ 265,193   
  

 

 

   

 

 

 

Total Fresh Chicken

   $ 811,854      $ 729,897   

Export and Other Export:

    

Prepared Foods

   $ 18,025      $ 18,929   

Chicken

   $ 177,892      $ 99,366   
  

 

 

   

 

 

 

Total Export (b)

   $ 195,917      $ 118,295   

Other Chicken By Products

   $ 3,995      $ 3,963   
  

 

 

   

 

 

 

Total Export and Other

   $ 199,911      $ 122,257   
  

 

 

   

 

 

 

Total U.S. Chicken

   $ 1,524,858      $ 1,426,135   
  

 

 

   

 

 

 

Mexico:

   $ 182,169      $ 147,412   

Total Chicken Sales

   $ 1,707,027      $ 1,573,547   
  

 

 

   

 

 

 

Total Prepared Foods

   $ 531,117      $ 592,909   

Sale of Other Products

    

U.S.

   $ 173,322      $ 139,051   
  

 

 

   

 

 

 

Mexico

   $ 10,876      $ 7,251   
  

 

 

   

 

 

 

Total Other Products

   $ 184,197      $ 146,303   
  

 

 

   

 

 

 

Total Net Sales

   $     1,891,224      $     1,719,850   
  

 

 

   

 

 

 
     Sep 25,
2011
    Sep 26,
2010
 

Chicken Sales:

    

U.S. Chicken Sales:

    

Prepared Foods:

    

Foodservice

     26.9     32.8

Retail

     6.6     7.4
  

 

 

   

 

 

 

Total Prepared Foods

     33.5     40.2

Fresh Chicken:

    

Foodservice

     35.9     32.6

Retail

     17.4     18.6
  

 

 

   

 

 

 

Total Fresh Chicken

     53.3     51.2

Export and Other Export:

    

Prepared Foods

     1.2     1.3

Chicken

     11.7     7.0
  

 

 

   

 

 

 

Total Export

     12.9     8.3

Other Chicken By Products

     0.3     0.3
  

 

 

   

 

 

 

Total Export and Other(b)

     13.2     8.6
  

 

 

   

 

 

 

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 25,
2011
    Sep 26,
2010
 

Income Statement Data:

    

Net sales

   $ 1,891,224      $ 1,719,850   

Non-recurring recoveries

     —          —     

Asset impairment and restructuring charges

     —          2,525   

Gross margin

     (62,387     157,294   

Goodwill Impairment

     —          —     

Selling, general and administrative expenses

     51,197        45,096   

Restructuring and related costs

     11,472        (1,006

Operating income (loss)

     (125,056     113,204   

Interest expense, net

     27,607        25,846   

Miscellaneous, net

     10,197        (1,676

Loss on early extinguishment of debt

     —          —     

Restructuring items, net

     —          —     

Income (loss) before restructuring & income taxes from continuing operations

     (162,860     89,034   

Income tax expense (benefit)

     (60     30,512   

Income (loss) from continuing operations

     (162,800     58,522   

Extraordinary charge - net of tax

     —          —     

Income (loss) from operation of discontinued business, net of tax

     —          —     

Gain on sale of discontinued business, net of tax

     —          —     

Net income (loss)

     (162,800     58,522   

Net income (loss) attributable to noncontrolling interest

     (284     596   

Net income (loss) attributable to Pilgrim’s Pride

   $ (162,516   $ 57,926   

Per Common Share Data: (d)

    

Income (loss) from continuing operations

   $ (0.76   $ 0.27   

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)

   $ (0.76   $ 0.27   

Cash dividends

   $ —        $ —     

Book value

   $ 3.10      $ 4.84   

Balance Sheet Summary:

    

Working capital

   $ 826,731      $ 821,087   

Total assets

   $ 2,999,686      $ 3,017,981   

Notes payable and current maturities of long-term debt

   $ 15,609      $ 75,355   

Long-term debt, less current maturities

   $ 1,458,890      $ 1,166,606   

Note payable to JBS USA Holdings, Inc.

   $ 50,000        —     

Total debt

   $ 1,524,499      $ 1,241,961   

Senior secured debt (included in Total Debt)

   $ —        $ —     

Total stockholders’ equity

   $ 663,922      $ 1,036,239   

Cash Flow Summary:

    

Operating cash flow

   $ 10,692      $ 37,250   

Depreciation & amortization (a)

   $ 53,631      $ 57,924   

Capital expenditures

   $ 18,717      $ 41,594   

Business acquisitions

   $ —        $ —     

Financing activities, net

   $ 10,499      $ 3,642   

Cashflow Ratios:

    

EBITDA (b)

   $ (84,137   $ 169,078   

EBITDA (last four qtrs.)

   $ (85,426   $ 317,803   

Adjusted EBITDA

   $ (72,381   $ 170,001   

Adjusted EBITDA (last four qtrs.)

   $ (47,634   $ 422,047   

Key Indicators (as a percentage of net sales):

    

Gross margin

     -3.3%        9.1%   

Selling, general and administrative expenses

     2.7%        2.6%   

Operating income (loss)

     -6.6%        6.6%   

Interest expense, net

     1.5%        1.5%   

Income (loss) from continuing operations

     -8.6%        3.4%   

Net income (loss)

     -8.6%        3.4%   

(a) Includes amortization of capitalized financing costs of approximately

   $ 2,515      $ 3,726   

(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, reorganization items and loss on early extinguishment of debt less net income attributable to noncontrolling interests. 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

   $  (162,800   $ 58,522   

Add:

    

Income Tax Expense (benefit)

     (60     30,512   

Interest expense, net

     27,607        25,846   

Depreciation and amortization from continued operations

     53,631        57,924   

Minus:

    

Amortization of capitalized financing costs

     2,515        3,726   
  

 

 

   

 

 

 

EBITDA

   ($ 84,137   $ 169,078   

Add:

    

Restructuring charges, net

     11,472        1,519   

Reorganization items, net

     —          —     

Loss on early extinguishment of debt

     —          —     

Goodwill Impairment

    

Minus:

    

Net income (loss) attributable to noncontrolling interest

     (284     596   
  

 

 

   

 

 

 

Adjusted EBITDA

   ($ 72,381   $ 170,001   


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.

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)    Sep 25,
2011
    Sep 26,
2010
 

Net Sales to Customers:

    

Chicken:

    

United States

   $ 1,524,858      $ 1,426,134   

Mexico

     182,169        147,412   
  

 

 

   

 

 

 

Sub-total

     1,707,027        1,573,546   

Other Products:

    

United States

     173,322        139,052   

Mexico

     10,875        7,252   
  

 

 

   

 

 

 

Sub-total

     184,197        146,304   
  

 

 

   

 

 

 

Total

   $ 1,891,224      $ 1,719,850   
  

 

 

   

 

 

 

Operating Income:

    

Chicken:

    

United States

   $ (115,135   $ 82,169   

Mexico

     (1,209     26,346   
  

 

 

   

 

 

 

Sub-total

     (116,344     108,515   

Other Products:

    

United States

     —          2,502   

Mexico

     2,760        1,181   
  

 

 

   

 

 

 

Sub-total

     2,760        3,683   

Non-recurring recoveries

     —          —     

Restructuring Items, net

     (11,472     (1,006
  

 

 

   

 

 

 

Total

   $ (125,056   $ 113,204   
  

 

 

   

 

 

 

Depreciation and Amortization: (a)

    

Chicken:

    

United States

   $ 48,083      $ 51,548   

Mexico

     1,896        2,156   
  

 

 

   

 

 

 

Sub-total

     49,979        53,704   

Other Products:

    

United States

     3,614        4,164   

Mexico

     38        56   
  

 

 

   

 

 

 

Sub-total

     3,652        4,220   
  

 

 

   

 

 

 

Total

   $ 53,631      $ 57,924   
  

 

 

   

 

 

 

Total Assets:

    

Chicken:

    

United States

   $ 2,427,963      $ 2,487,306   

Mexico

     386,124        372,417   
  

 

 

   

 

 

 

Sub-total

     2,814,087        2,859,723   

Other Products:

    

United States

     181,692        155,101   

Mexico

     3,907        3,157   
  

 

 

   

 

 

 

Sub-total

     185,599        158,258   
  

 

 

   

 

 

 

Total

   $ 2,999,686      $ 3,017,981   
  

 

 

   

 

 

 

Capital Expenditures:

    

Chicken:

    

United States

   $ 16,711      $ 39,474   

Mexico

   $ 2,006      $ 1,864   
  

 

 

   

 

 

 

Sub-total

     18,717        41,338   

Other Products:

    

United States

     —          256   

Mexico

     —          —     
  

 

 

   

 

 

 

Sub-total

     —          256   
  

 

 

   

 

 

 

Total

   $ 18,717      $ 41,594   
  

 

 

   

 

 

 

(a)    Includes amortization of capitalized financing costs of approximately

   $ 2,515      $ 3,726