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Investor Presentation
December 2017
Pilgrim’s Pride Corporation
(NASDAQ: PPC)
Cautionary Notes and Forward-Looking
Statements
square6 Statements contained in this presentation that share our intentions, beliefs, expectations or predictions for the future, denoted by the words “anticipate,” “believe,”
“estimate,” “should,” “expect,” “project,” “plan,” “imply,” “intend,” “foresee” and similar expressions, are forward-looking statements that reflect our current views about
future events and are subject to risks, uncertainties and assumptions. Such risks, uncertainties and assumptions include the following matters affecting the chicken
industry generally, including fluctuations in the commodity prices of feed ingredients and chicken; actions and decisions of our creditors; our ability to obtain and
maintain commercially reasonable terms with vendors and service providers; our ability to maintain contracts that are critical to our operations; our ability to retain
management and other key individuals; certain of our reorganization and exit or disposal activities, including selling assets, idling facilities, reducing production and
reducing workforce, resulted in reduced capacities and sales volumes and may have a disproportionate impact on our income relative to the cost savings; risk that
the amounts of cash from operations together with amounts available under our exit credit facility will not be sufficient to fund our operations; management of our
cash resources, particularly in light of our substantial leverage; restrictions imposed by, and as a result of, our substantial leverage; additional outbreaks of avian
influenza or other diseases, either in our own flocks or elsewhere, affecting our ability to conduct our operations and/or demand for our poultry products;
contamination of our products, which has previously and can in the future lead to product liability claims and product recalls; exposure to risks related to product
liability, product recalls, property damage and injuries to persons, for which insurance coverage is expensive, limited and potentially inadequate; changes in laws or
regulations affecting our operations or the application thereof; new immigration legislation or increased enforcement efforts in connection with existing immigration
legislation that cause our costs of business to increase, cause us to change the way in which we do business or otherwise disrupt our operations; competitive factors
and pricing pressures or the loss of one or more of our largest customers; currency exchange rate fluctuations, trade barriers, exchange controls, expropriation and
other risks associated with foreign operations; disruptions in international markets and distribution channels; and the impact of uncertainties of litigation as well as
other risks described herein and under “Risk Factors” in the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (the
“SEC”).
square6 Actual results could differ materially from those projected in these forward-looking statements as a result of these factors, among others, many of which are beyond
our control. In making these statements, we are not undertaking, and specifically decline to undertake, any obligation to address or update each or any factor in
future filings or communications regarding our business or results, and we are not undertaking to address how any of these factors may have caused changes to
information contained in previous filings or communications. Although we have attempted to list comprehensively these important cautionary risk factors, we must
caution investors and others that other factors may in the future prove to be important and affecting our business or results of operations.
square6 This presentation may include information that may be considered non-GAAP financial information as contemplated by SEC Regulation G, Rule 100, including
EBITDA, Adjusted EBITDA, LTM EBITDA, Net Debt, Free Cash Flow, Adjusted EBITDA Margin and others. Accordingly, we have provided tables in the
accompanying appendix and in our previous filings with the SEC that reconcile these measures to their corresponding GAAP-based measures and explain why
these measures are useful to investors, which can be obtained from the Consolidated Statements of Income provided with our previous filings with the SEC. Our
method of computation may or may not be comparable to other similarly titled measures used in filings with the SEC by other companies. See the consolidated
statements of income and consolidated statements of cash flows included in our financial statements.
1
Shared on XX/XX/XX
Our Vision to be the BEST
Through Operational Excellence & Acquisitions
Closing GAPS Expanding TARGET
U.S.
Focus
Highlights of Our Business
Largest poultry company in the world with a unique portfolio and geographic diversification
Combination with Moy Park creates a stronger, more diverse and safer global leader
Balanced portfolio of fresh, prepared and value-added chicken products
Broad, differentiated products to meet retail and foodservice customer demand growth
Growing operation in Mexico – Acquisitions and Greenfields
Operational focus on mix and efficiencies creating competitive advantage
Continuous operational improvement – both mix and cost
SG&A benchmark in the industry
Zero-Based Budgeting resulting in accountability and disciplined management
Chicken is the fastest growing protein both in U.S. and abroad
Poultry industry in balance with demand
Affordable and convenient product to consumers
Supply growing in-line with Demand
Favorable supply of key input (feed)
Management team with proven track record
Pilgrim’s has a history of successfully identifying and rapidly realizing synergy opportunities
Disciplined capital allocation and focus on profits and cash flows
4
Our Vision and Strategy
5
Industry Trends Remain Positive
Chicken is the fastest growing protein both in U.S. and abroad
Poultry industry in balance with demand
Increase in production to meet demand and inventories at adequate levels
Poultry industry close to operational capacity
Increased demand for chicken across both foodservice and retail
Demand across entire spectrum of products including large bird and small bird segments
Growth in differentiated categories such as Organic and NAE
Pricing for beef and pork continues to provide favorable value proposition for chicken despite higher
availability
Record corn and soybean crop have created a global surplus, reducing the cost of
inputs
Rising corn crops in the U.S. and world-wide have pushed global stocks to over 200 million tons
Record crops in major growing regions contributing to record global stocks for oilseeds, continuing to drive
pricing lower despite some volatility
Export market adapted to global AI scenario
Most markets have re-opened and government adopting regionalization policy
Poultry continues to be the fast growing protein in the world and South/North America are the most
competitive producers
6
U.S. Per Capita Chicken Consumption Continues
to Rise
7
Annual Pounds-Per-Person Chicken Consumption:
1960 to 2017 Projected
Source: USDA Last updated August 2017
square4 Due to growth in retail
and foodservice
square4 Millennials, Gen Z
AND people (40-69)
are consuming more
chicken than
consumers of the
same age range
30 years ago
square4 Chicken preferred for
health/sustainable
attributes
-
10
20
30
40
50
60
70
80
90
100
1960 1969 1974 1979 1984 1989 1994 1999 2004 2009 2014
91.3
57.9
17.0
15.5
50.9
A U.S. Market Share Leader in Ready-to-Cook
Pounds
NEARLY
CHICKENS IN THE
U.S. COMES FROM
___________________________
Source: Watt Poultry USA March 2017, PPC.
8
Geographic and Business Diversification in U.S.
LARGE
8+ LBS
RETAIL
6–7 LBS
SMALL
4–5 LBS
BUSINESS UNITS
CASE READY
SMALL BRID
BIG BIRD/COMMERCIAL
PREPARED FOODS
FRESH FOODSERVICE
PROTEIN CONVERSION
GNP
HATCHERIES33 TEAM MEMBERS~32K BIRDS PERWEEK~33MFEED MILLS26 PROCESSING PLANTS31
4 PROTEIN CONVERSION
4 PET FOOD
LBS PER
YEAR9+B
LOCATIONS
9
Broad Portfolio With Commodity Upside and Market
Downside Protection
circle5 8+ Lbs. Live Weight
circle5 Commodity Price Correlation
circle5 Foodservice/Industrial
circle5 6 Lbs. Live Weight
circle5 Program Pricing
circle5 Retail/Consumer Brands
circle5 4 Lbs. Live Weight
circle5 Contract Pricing
circle5 Foodservice/Deli
circle5 Partially Fried/Fully Cooked
circle5 List Pricing
circle5 Foodservice/Retail/Deli
10
Delivering Higher Order Attributes to Meet Growing
Consumer Needs
Grew 11% and 14% in dollars and
volume vs. conventional
at -4% and 1.9%, respectively
2nd highest sales growth
claim (28.7%), after organic (44%)
76% of retailers report success with
converting shoppers
61% of consumers
willing to pay 5 cents/lb. more,
37% $1/lb. more
Organic Claims #1
CAGR over Past 5 Years
(Compounded Annual Growth Rate)
>30%
CAGR $ Growth
23%
CAGR Volume Growth
92.6% of consumers find it very
important to purchase humanely
raised meats
American Humane Certified
has highest brand awareness
of certifiers; almost 50%
perceive it to be the best
On average, consumers willing
to pay 5.7% more for meats
products that are humane
certified; Millennials 6.5% more
___________________________
Source: 2016 and 2017 Power of Meat, 2012 and 2016,Consumer Reports Surveys, 2016 National Chicken Council U.S. Chicken Consumption Report, MeatingPlace; 2014 Humane
Heartland Farm Animal Welfare Survey, American Humane Association, November 2014; 2016 Animal Welfare Research/Qualtrics.
11
Diverse Channel Mix Drives Value to Key
Customers; Addresses Multiple Consumer Needs
square4 Cut-up Parts
square4 Boneless Skinless
square4 Wings
square4 Whole Chickens
square4 Par-fried, Breaded
• Breasts/Other Boneless
• Wings/Other Bone-In
square4 Fully Cooked
• Breaded
• Glazed
• Roasted
square4 Fully Cooked
• Pulled & Diced Strips
• Fajita Strips
• Chicken Salads
square4 Whole Chicken
square4 Cut-up Parts
square4 Boneless Skinless
square4 Raw Value-Added
square4 Fully Cooked Frozen
• Breaded, Glazed &
Roasted
• Par-fried Breaded
• Sausages & Meatballs
square4 Individually Frozen & Fresh
• Boneless Skinless Breasts,
Tenders, Thighs
• Bone-in Parts
• Burgers
square4 Rotisserie Chickens
square4 8-piece Cut-up
square4 Breaded, Roasted & Glazed
square4 Patties
MORE LESSPREP TIME, WORK, LABOR
FOODSERVICE
RETAIL & DELI
12
Our Brands and Production Mix
B R A N D S M I X *
* YE2016, U.S. only
circle5 Recent acquisitions
expand our ability to
deliver against
underserved consumers,
surprise and delight
circle5 Brands can gain share via
differentiation, especially
against Millennials
13
Our KEY Customer Strategy Drives Growth and
Loyalty
2011 2012 2013 2014 2015 2016 2017
14
https://www.cnbc.com/2017/01/30/online-grocery-sales-set-surge-grabbing-20-percent-of-market-by-2025.html
https://www.cnbc.com/2017/06/21/dont-worry-wal-mart-amazon-buying-whole-foods-is-just-a-drop-in-the-bucket.html
On-Line/Digital Grocery
Also Growing in Alternative Channels
Our Methods to Achieve Operational Excellence
• Called “ZBB”
• ALL expenses justified for each new period
• Starts from a ZERO base
• Built around what’s NEEDED
• Analyzes EVERY function
• Optimizes COSTS not just revenue
COST/EFFICIENCY
IMPROVEMENT
FEWER POSITIONS DUE TO
PERFECT STAFFING
17
Creating Efficiencies in the Operation
2011 2012 2013 2014 2015 2016
+1.5%
+0.9%
+1.5%
+0.8%
+0.3%
2011 2012 2013 2014 2015 2016
-1.2c/lb.
-0.4c/lb.
-0.8c/lb.
-1.4c/lb. +0.4c/lb.
Yield
Plant Cost
$250
$125
$200
$180
$24
$174
2012 2013 2014 2015 2016 2017
Target
Operational Improvement
($ in millions)
circle5 >$1.0bn cumulative operational improvements ’11-’16
circle5 2016 impacted by portfolio mix changes
circle5 $174mm targeted for 2017
circle5 Commitment at every level; using ZBB
15
Reducing Costs and Increasing Agility
$0
$50
$100
$150
$200
$250
$300
$350
$400
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Reduced, Sustainable SG&A Levels
2.5%-3.0%
4.7%
($ in millions)
circle5 De-layering: Closer to customers
circle5 Shared Service Center with JBS
circle5 Zero-Based Budget
circle5 Strategic Marketing
16
Growing in US and Integrating the Gold’n Plump
Business
Expanded Geography
Differentiated Brands
circle5 Vertically Integrated, State-of-the-Art
circle5 Operationally Excellent & Flexible
circle5 2 Primary Processing Plants
circle5 2 Hatcheries, 2 Feed Mills
circle5 Fresh and Frozen
circle5 Multiple Channels
circle5 Medium-size Bird for Retail Tray Pack
circle5 Small-Bird Strategy for Deli &
Foodservice
18
Up
600Bps
Exceeding
Expected Synergies
of $30MM
Growing in Mexico Through Acquisition and
Greenfields
Geographic Diversity
Product Diversity
Growth Opportunity
circle5 Strong player in central and north regions
circle5 Demand growth for chicken
circle5 New complex in Veracruz – starting with 100K
live birds/week growing to 500K in 2 years
circle5 Diversified product mix from commodity to prepared
branded products, including premium Pilgrim’s brand
circle5 Acquisition in Mexico at end of Q2 2015:
square5 Initial estimate of $30mm of synergies
square5 Actual synergies of $50mm and the acquired
asset is performing at the same level as the
legacy
square5 Cross-learning and benchmarking benefiting
both new and legacy asset results
19
Opening New Platforms for Growth – Moy Park
Increases
Diversification
circle5 Provides further geographic diversification with exposure to the European market
circle5 Platform for growth in Europe and its export destinations
Improves
Earnings Stability
circle5 Attractive structural market dynamics in European fresh poultry
circle5 Mitigated commodity exposure as a portion of sales are on long-term relationships
Strong Value-Add
Portfolio
circle5 Expansion of prepared foods portfolio with addition of high value-added capabilities
Sharing of
Innovation and
Best Practices
circle5 Access to a portfolio of innovative products and leading new product development
platform
circle5 Share best practices, operational excellence and management expertise
Value Creation circle5 Significant synergy opportunities
checkbld
checkbld
checkbld
checkbld
checkbld
20
Moy Park – A Leading Prepared Foods Platform
circle5 Top 15 UK food company providing fresh, prepared, value-
added and locally farmed poultry and complementary
convenience food products for more than 70 years
circle5 Highly regarded and innovative manufacturer of convenience
food products
square4 Prepared foods represent approximately 50% of revenue
circle5 Best-in-class and fully vertically integrated market-leading
platform
square4 13 plants in the UK, Ireland, France and the Netherlands
square4 5.7mm birds processed per week (approximately 30%(1)
of UK production)
square4 More than 12,000 team members
circle5 Stability in margin structure supported by prepared foods
business model and long-term partnerships with customers
circle5 75% of revenues generated in the UK & Ireland; 25% in
Continental Europe
circle5 Supplies major UK supermarkets and major European
Quickservice Restaurant Operators
___________________________
1. Poultry volume produced based on DEFRA calculations using egg placings and average mortality rates.
Fresh Processing
UK Added-Value Processing
EU Added-Value Processing
Grandparent Breeding Grounds
Legend
21
Significant Synergy and Growth Opportunities
Pilgrim’s has a history of successfully
identifying and rapidly realizing synergy
opportunities
checkbld Synergies realized in Mexico post-
integration exceeded original target
and the acquired asset is performing
at the same level as the legacy
checkbld Synergies identified at GNP already
exceed the initial target
PROVEN HISTORY OF EFFICIENT
INTEGRATION
UNIQUE OPPORTUNITY OF INNOVATION AND
EFFICIENCY
OPERATIONAL
EXCELLENCE
circle5 Production efficiencies
circle5 Zero Based Budgeting
circle5 Product portfolio optimization
circle5 Long expertise in Organic and sustainable
production
UNIQUE RESULT-
ORIENTED
CULTURE
SOURCING
circle5 Optimization of sourcing and production
circle5 Live cost improvements
circle5 Yield improvements
circle5 Global management of feed sourcing
VALUE CHAIN
EFFICIENCY
SG&A circle5 Leverage marketing and sales infrastructure on export markets
circle5 Accelerate Innovation for Key customers
circle5 IT system integration
FOCUS ON KEY
CUSTOMERS AND
DISCIPLINE
22
Financial Overview
Our Vision – Total Shareholder Return Growth
___________________________
Note: Peer Group includes Hormel Foods Corp, Sanderson Farms Inc. and Tyson Foods Inc.
1. $100 invested on 12/30/12 in stock or 12/31/12 in index, including reinvestment of dividends. Indexes calculated on month-end basis.
23
$683
$340
$1,226
$1,565 $1,632 $1,627 $1,556 $1,396 $1,574
$3,544
2010 2011 2012 2013 2014 2015 2016 2017 LTM
PF
International
(Export + Mexico + Europe)
$5,656 $5,971
$6,336 $6,784
$7,027 $6,784 $6,358 $6,853
2010 2011 2012 2013 2014 2015 2016 2017 LTM
PF
U.S. Domestic
Progress Report – Growth
___________________________
Note: 2012 sales adjusted to 52 weeks, figures may be off due to rounding.
1. Comprised of $8,460mm from Pilgrim’s Pride, which is pro forma for a full year of GNP sales, and $1,937mm (£1,527mm) from Moy Park.
…BOTH in the U.S. and Abroad6 Years of Significant Growth …
($ in millions)
(1)
$6,882
$7,536
$7,968
$8,411
$8,583
$8,180 $7,931
$10,396
2010 2011 2012 2013 2014 2015 2016 2017 LTM
PF
Total Sales
51%
21%
($ in millions)
189%
(1)
(1)
24
Progress Report – Results
___________________________
Note: 2012 Lbs. adjusted to 52 weeks as fiscal 2012 contained 53 weeks. Adjustment was to reduce lbs. by 1/53rd.
… and ProfitabilityGrowth Volume …
(MM lbs.)
Adj. EBITDA % Margin
7.0% (2.0%) 5.0% 9.6% 15.8% 14.8% 11.3% 13.0%
2010 2011 2012 2013 2014 2015 2016 2017
LTM PF
Volume
35%
$482
($147)
$398
$810
$1,352
$1,214
$899
$1,354
2010 2011 2012 2013 2014 2015 2016 2017
LTM PF
Adj. EBITDA 181%
($ in millions)
25
136
90 115
171 176
272
213
2011 2012 2013 2014 2015 2016 YTD
Progress Report – Capital Spending
circle5 Strong Free Cash Flow generation has enabled us to direct more capital spending towards identified projects with rapid
payback and structural projects. $1B invested in the last 6 years
circle5 New strategic projects will support key customers growth and de-emphasize our exposure to commodity markets by
bringing more differentiated portfolio.
Capex ($mm)
circle5 Controlled Atmosphere Gas
Stunning
circle5 Automated White Meat Deboning
circle5 Automated Dark Meat Deboning
circle5 Higher Order Attributes
Leading U.S. Certified Organic Chicken Supplier
26
Third Quarter 2017 Financial Results
circle5 Strength across all US business units,
GNP operations significantly improved,
MX results above expectations.
circle5 SG&A higher due to addition of GNP
and Moy Park, investments in brands
in USA and Mexico, and $19MM non-
recurring acquisition/restructuring.
circle5 Adjusted Q3-17 EBITDA well above
Q3-16 and was among the top
quarterly performance in the U.S.
Main Indicators ($M)** Q3-17 Q3-16
Net Revenue 2,793.9 2,495.3
Gross Profit 478.6 253.1
SG&A 106.4 76.3
Operating Income 372.2 176.8
Net Interest 22.5 18.9
Net Income 232.7 98.7
Earnings Per Share
(EPS) 0.93 0.39
Adjusted EBITDA* 463.6 237.4
Adjusted EBITDA
Margin* 16.6% 9.5%
* This is a non-GAAP measurement considered by management to be
useful in understanding our results. Please see the appendix and most
recent SEC financial filings for definition of this measurement and
reconciliation to GAAP.
** Consolidated results include full-quarter of Moy Park, in accordance to
U.S. GAAP.
In $M U.S. EU MX
Net Revenue 1,938.5 514.3 341.0
Adjusted Operating
Income*
322.0 21.3 45.7
Adjusted Operating
Income Margin*
16.6% 4.1% 13.4%
27
Appendix
Historical Chicken Prices
31
Source: USDA-WASDE.
Source: USDA-WASDE
Chicken Cutout Retail Chicken Compared to
Beef and Pork
Source: PPC.
“EBITDA” is defined as the sum of net income (loss) plus interest, taxes, depreciation and amortization. “Adjusted EBITDA” is calculated by adding
to EBITDA certain items of expense and deducting from EBITDA certain items of income that we believe are not indicative of our ongoing operating
performance consisting of: (i) income (loss) attributable to non-controlling interests, (ii) restructuring charges, (iii) reorganization items, (iv) losses on
early extinguishment of debt and (v) foreign currency transaction losses (gains). EBITDA is presented because it is used by management 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. 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.
Source: PPC
PILGRIM'S PRIDE CORPORATION
Reconciliation of Adjusted EBITDA
(Unaudited) Thirteen Weeks Ended Thirty-Nine Weeks Ended
September 24,
2017
September 25,
2016
September 24,
2017
September 25,
2016
(In thousands)
Net income $ 238,313 $ 101,965 $ 584,242 $ 394,685
Add:
Interest expense, net 22,508 18,866 62,715 56,480
Income tax expense 113,396 53,819 278,046 202,979
Depreciation and amortization 71,763 58,718 204,625 174,128
Minus:
Amortization of capitalized financing costs 1,181 970 3,129 2,859
EBITDA 444,799 232,398 1,126,499 825,413
Add:
Foreign currency transaction loss (gains) (888) 4,569 (2,500) (1,769)
Acquisition charges 15,039 — 15,039 —
Restructuring charges 4,147 279 8,496 279
Minus:
Net income (loss) attributable to noncontrolling
interest (460) (130) 514 (334)
Adjusted EBITDA $ 463,557 $ 237,376 $ 1,147,020 $ 824,257
EBITDA Reconciliation
28
Source: PPC.
EBITDA margins have been calculated by taking the relevant unaudited EBITDA figures, then dividing by Net Revenue for the applicable period.
Source: PPC
PILGRIM'S PRIDE CORPORATION
Reconciliation of EBITDA Margin
(Unaudited) Thirteen Weeks Ended Thirty-Nine Weeks Ended Thirteen Weeks Ended Thirty-Nine Weeks Ended
September
24, 2017
September
25, 2016
September
24, 2017
September
25, 2016
September
24, 2017
September
25, 2016
September
24, 2017
September
25, 2016
(In thousands)
Net income from
continuing operations $ 238,313 $ 101,965 $ 584,242 $ 394,685 8.53 % 4.09 % 7.28 % 5.26 %
Add:
Interest expense, net 22,508 18,866 62,715 56,480 0.81 % 0.76 % 0.78 % 0.75 %
Income tax expense 113,396 53,819 278,046 202,979 4.06 % 2.16 % 3.46 % 2.70 %
Depreciation and
amortization 71,763 58,718 204,625 174,128 2.57 % 2.35 % 2.55 % 2.32 %
Minus:
Amortization of
capitalized financing
costs 1,181 970 3,129 2,859 0.04 % 0.04 % 0.04 % 0.04 %
EBITDA 444,799 232,398 1,126,499 825,413 15.92 % 9.32 % 14.03 % 10.99 %
Add:
Foreign currency
transaction gains (888) 4,569 (2,500) (1,769) (0.03)% 0.18 % (0.03)% (0.02)%
Acquisition charges 15,039 — 15,039 — 0.54 % — % 0.19 % — %
Restructuring charges 4,147 279 8,496 279 0.15 % 0.01 % 0.11 % — %
Minus:
Net income (loss)
attributable to
noncontrolling interest (460) (130) 514 (334) (0.02)% (0.01)% 0.01 % — %
Adjusted EBITDA $ 463,557 $ 237,376 $ 1,147,020 $ 824,257 16.59 % 9.52 % 14.28 % 10.98 %
Net Revenue: $ 2,793,885 $ 2,495,281 $ 8,025,511 $ 7,507,681 $ 2,793,885 $ 2,495,281 $ 8,025,511 $ 7,507,681
EBITDA Margin Reconciliation
29
Source: PPC.
A reconciliation of net income (loss) attributable to Pilgrim's Pride Corporation per common diluted share to adjusted net income (loss) attributable
to Pilgrim's Pride Corporation per common diluted share is as follows:
Source: PPC
PILGRIM'S PRIDE CORPORATION
Reconciliation of Adjusted Earnings
(Unaudited)
Thirteen Weeks Ended Thirty-Nine Weeks Ended
September 24,
2017
September 25,
2016
September 24,
2017
September 25,
2016
(In thousands, except per share data)
Net income attributable to Pilgrim's Pride Corporation $ 232,680 $ 98,657 $ 560,242 $ 369,914
Loss on early extinguishment of debt — — — —
Acquisition and restructuring charges, net of taxes 12,988 — 15,980 —
Foreign currency transaction gains (888) 4,569 (2,500) (1,769)
Income before loss on early extinguishment of debt and
foreign currency transaction gains 244,780 103,226 573,722 368,145
Weighted average diluted shares of common stock
outstanding 248,988 254,920 248,962 255,037
Income before loss on early extinguishment of debt and
foreign currency transaction gains
per common diluted share $ 0.98 $ 0.41 $ 2.30 $ 1.44
Reconciliation of Adjusted Earnings
30
Source: PPC.
A reconciliation of GAAP earnings per share (EPS) to adjusted earnings per share (EPS) is as follows:
Source: PPC
PILGRIM'S PRIDE CORPORATION
Reconciliation of GAAP EPS to Adjusted EPS
(Unaudited)
Thirteen Weeks Ended Thirty-Nine Weeks Ended
September 24, 2017 September 25, 2016 September 24, 2017 September 25, 2016
(In thousands, except per share data)
GAAP EPS $ 0.93 $ 0.39 $ 2.25 $ 1.45
Loss on early extinguishment of debt — — — —
Acquisition and restructuring charges, net of taxes 0.05 — 0.06 —
Foreign currency transaction gains — 0.02 (0.01) (0.01)
Adjusted EPS $ 0.98 $ 0.41 $ 2.30 $ 1.44
Weighted average diluted shares of common stock outstanding 248,988 254,920 248,962 255,037
Adjusted EPS Bridge
31
Source: PPC. Source: PPC
PILGRIM'S PRIDE CORPORATION
Supplementary Selected Segment and Geographic Data
Thirteen Weeks Ended Thirty-Nine Weeks Ended
September 24, 2017 September 25, 2016 September 24, 2017 September 25, 2016
(Unaudited)
(In thousands)
Sources of net sales by country of origin:
US: $ 1,938,542 $ 1,724,625 $ 5,557,089 $ 5,072,351
Mexico: 341,018 307,096 994,568 950,622
Europe: 514,325 463,560 1,473,854 1,484,708
Total net sales: $ 2,793,885 $ 2,495,281 $ 8,025,511 $ 7,507,681
Sources of cost of sales by country of origin:
US: $ 1,561,333 $ 1,545,289 $ 4,656,825 $ 4,470,648
Mexico: 286,617 276,366 822,822 818,749
Europe: 467,374 420,590 1,336,123 1,343,242
Elimination: (23) (24) (69) (71)
Total cost of sales: $ 2,315,301 $ 2,242,221 $ 6,815,701 $ 6,632,568
Sources of gross profit by country of origin:
US: $ 377,209 $ 179,336 $ 900,262 $ 601,703
Mexico: 54,401 30,730 171,745 131,874
Europe: 46,951 42,970 137,734 141,466
Elimination: 23 24 69 70
Total gross profit: $ 478,584 $ 253,060 $ 1,209,810 $ 875,113
Sources of operating income by country of origin:
US: $ 307,962 $ 141,195 $ 719,121 $ 480,280
Mexico: 45,692 22,603 146,241 108,856
Europe: 18,569 13,027 51,874 55,841
Elimination: 23 23 69 71
Total operating income: $ 372,246 $ 176,848 $ 917,305 $ 645,048
Segment and Geographic Data
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