GREELEY, Colo., Oct. 26, 2012 (GLOBE NEWSWIRE) -- Pilgrim's Pride Corporation PPC reported its third quarter 2012 results with net sales of $2.1 billion and Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA") of $103 million. The Company recognized net income of $42.9 million during the third quarter of 2012, resulting in net income of $0.17 per diluted share. This compares to a net loss of $162.5 million, or an adjusted loss of $0.72 per diluted share in the same quarter of the prior year. Net debt was reduced to $1.1 billion in the period, reflecting a year-to-date reduction in net debt of $317.1 million.
"Our execution of the strategy implemented during the past 18 months has provided for vast improvement in our results, even in an uncertain and volatile environment," explained Bill Lovette, Pilgrim's Chief Executive Officer.
"Notwithstanding a year-over-year increase of $109 million in feed costs, the positive change in our net income for the first three quarters of 2012 is a swing of $672 million compared to 2011, owing to cost and yield improvements, pricing strategy changes, enhanced sales mix and a reduction of $24.6 million in SG&A costs."
"Even with rapidly increasing input costs impacting our live inventories, we demonstrated effective management of working capital that resulted in positive cash flows. This, together with our successful rights offering and focus on managing our core business, delivered a year-to-date reduction in net debt of $317.1 million, and culminated in a solid liquidity position of $671.5 million, with our lowest net debt position in over five years."
Conference Call Information
A conference call to discuss Pilgrim's quarterly results will be held today at 7:00 a.m. Mountain (9 a.m. Eastern). Participants are encouraged to pre-register for the conference call using the link below. Callers who pre-register will be given a unique PIN to gain immediate access to the call and bypass the live operator. Participants may pre-register at any time, including up to and after the call start time.
To pre-register, go to:
http://services.choruscall.com/links/ppc121026.html
You may also reach the pre-registration link by logging in through the investor section of our website at www.pilgrims.com and clicking on the link under "Upcoming Events."
For those who would like to join the call but have not pre-registered, access is available by dialing +1 (877) 270-2148 within the US or +1 (412) 902-6510 internationally and requesting the "Pilgrim's Pride Conference." Please note that to submit a question to management during the call, you must be logged in via telephone.
Replays of the conference call will be available on Pilgrim's website approximately two hours after the call concludes and can be accessed through the "Investor" section of www.pilgrims.com. The webcast will be available for replay through January 26, 2013.
About Pilgrim's Pride
Pilgrim's employs approximately 38,000 people and operates chicken processing plants and prepared-foods facilities in 12 states, Puerto Rico and Mexico. The Company's primary distribution is through retailers and foodservice distributors.
Forward-Looking Statements
Statements contained in this press release that state the intentions, plans, hopes, beliefs, anticipations, expectations or predictions of the future of Pilgrim's Pride Corporation and its management are forward-looking statements. It is important to note that the actual results could differ materially from those projected in such forward-looking statements. Factors that could cause actual results to differ materially from those projected in such forward-looking statements include: matters affecting the poultry industry generally; the ability to execute the Company's business plan to achieve desired cost savings and profitability; future pricing for feed ingredients and the Company's products; outbreaks of avian influenza or other diseases, either in Pilgrim's Pride's flocks or elsewhere, affecting its ability to conduct its operations and/or demand for its poultry products; contamination of Pilgrim's Pride's 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; management of cash resources; restrictions imposed by, and as a result of, Pilgrim's Pride's leverage; changes in laws or regulations affecting Pilgrim's Pride's operations or the application thereof; new immigration legislation or increased enforcement efforts in connection with existing immigration legislation that cause the costs of doing business to increase, cause Pilgrim's Pride to change the way in which it does business, or otherwise disrupt its operations; competitive factors and pricing pressures or the loss of one or more of Pilgrim's Pride's largest customers; currency exchange rate fluctuations, trade barriers, exchange controls, expropriation and other risks associated with foreign operations; disruptions in international markets and distribution channel, including exports into Russia, the anti-dumping proceeding in Ukraine and the anti-dumping and countervailing duty proceeding in China; and the impact of uncertainties of litigation as well as other risks described under "Risk Factors" in the Company's Annual Report on Form 10-K and subsequent filings with the Securities and Exchange Commission. Pilgrim's Pride Corporation undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
| PILGRIM'S PRIDE CORPORATION | ||||
| Consolidated Statements of Operations | ||||
| (Unaudited) | ||||
| Thirteen Weeks Ended | Thirty-Nine Weeks Ended | |||
| September 23, | September 25, | September 23, | September 25, | |
| 2012 | 2011 | 2012 | 2011 | |
| (In thousands) | (In thousands) | |||
| Net sales | $ 2,068,478 | $ 1,891,224 | $ 5,931,720 | $ 5,706,390 |
| Costs and expenses: | ||||
| Cost of sales | 1,962,343 | 1,953,611 | 5,571,431 | 5,864,810 |
| Operational restructuring charges | -- | -- | -- | 3,305 |
| Gross profit (loss) | 106,135 | (62,387) | 360,289 | (161,725) |
| Selling, general and administrative expense | 41,782 | 51,197 | 131,477 | 156,073 |
| Administrative restructuring charges, net | 2,647 | 11,472 | 5,921 | 12,740 |
| Operating income (loss) | 61,706 | (125,056) | 222,891 | (330,538) |
| Interest expense | 25,260 | 27,930 | 78,430 | 82,863 |
| Interest income | (256) | (323) | (886) | (1,311) |
| Foreign currency transaction losses (gains) | (7,701) | 13,925 | (5,417) | 11,235 |
| Miscellaneous, net | 413 | (3,728) | (272) | (6,236) |
| Income (loss) before income taxes | 43,990 | (162,860) | 151,036 | (417,089) |
| Income tax expense (benefit) | 1,049 | (60) | (656) | (6,462) |
| Net income (loss) | 42,941 | (162,800) | 151,692 | (410,627) |
| Less: Net income (loss) attributable to noncontrolling interests | 10 | (284) | 230 | 790 |
| Net income (loss) attributable to Pilgrim's Pride Corporation | $ 42,931 | $ (162,516) | $ 151,462 | $ (411,417) |
| Weighted average shares of common stock outstanding: | ||||
| Basic | 258,726 | 224,996 | 247,005 | 224,996 |
| Diluted | 258,837 | 224,996 | 247,103 | 224,996 |
| Net income (loss) per share of common stock outstanding: | ||||
| Basic | $ 0.17 | $ (0.72) | $ 0.61 | $ (1.83) |
| Diluted | $ 0.17 | $ (0.72) | $ 0.61 | $ (1.83) |
| PILGRIM'S PRIDE CORPORATION | ||
| Consolidated Balance Sheets | ||
| September 23 | December 25, | |
| 2012 | 2011 | |
| (Unaudited) | ||
| (In thousands) | ||
| Cash and cash equivalents | $ 55,030 | $ 41,609 |
| Restricted cash and cash equivalents | 4,526 | 7,680 |
| Investment in available-for-sale securities | -- | 157 |
| Trade accounts and other receivables, less allowance for doubtful accounts | 367,854 | 349,222 |
| Account receivable from JBS USA, LLC | 8,170 | 21,198 |
| Inventories | 979,243 | 879,094 |
| Income taxes receivable | 64,944 | 59,067 |
| Prepaid expenses and other current assets | 54,884 | 52,350 |
| Assets held for sale | 28,826 | 53,816 |
| Total current assets | 1,563,477 | 1,464,193 |
| Investment in available-for-sale securities | -- | 497 |
| Deferred tax assets | 71,099 | 71,099 |
| Other long-lived assets | 48,931 | 57,921 |
| Identified intangible assets, net | 39,803 | 44,083 |
| Property, plant and equipment, net | 1,196,964 | 1,241,752 |
| Total assets | $ 2,920,274 | $ 2,879,545 |
| Accounts payable | $ 320,004 | $ 328,864 |
| Account payable to JBS USA, LLC | 6,280 | 11,653 |
| Accrued expenses and other current liabilities | 310,463 | 281,797 |
| Current deferred tax liabilities | 79,319 | 79,248 |
| Current maturities of long-term debt | 15,619 | 15,611 |
| Total current liabilities | 731,685 | 717,173 |
| Long-term debt, less current maturities | 1,151,127 | 1,408,001 |
| Note payable to JBS USA Holdings, Inc. | -- | 50,000 |
| Other long-term liabilities | 144,746 | 145,941 |
| Total liabilities | 2,027,558 | 2,321,115 |
| Common stock | 2,590 | 2,143 |
| Additional paid-in capital | 1,641,783 | 1,443,484 |
| Accumulated deficit | (692,483) | (843,945) |
| Accumulated other comprehensive loss | (62,222) | (46,070) |
| Total Pilgrim's Pride Corporation stockholders' equity | 889,668 | 555,612 |
| Noncontrolling interest | 3,048 | 2,818 |
| Total stockholders' equity | 892,716 | 558,430 |
| Total liabilities and stockholders' equity | $ 2,920,274 | $ 2,879,545 |
PILGRIM'S PRIDE CORPORATION
Selected Financial Information
(Unaudited)
NOTE: "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 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 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.
| Thirteen Weeks Ended | Thirty-Nine Weeks Ended | |||
| September 23, | September 25, | September 23, | September 25, | |
| 2012 | 2011 | 2012 | 2011 | |
| (In thousands) | (In thousands) | |||
| Net income (loss) from continuing operations | $ 42,941 | $ (162,800) | $ 151,692 | $ (410,627) |
| Add: | ||||
| Income tax expense (benefit) | 1,049 | (60) | (656) | (6,462) |
| Interest expense, net | 25,004 | 27,607 | 77,544 | 81,552 |
| Depreciation and amortization | 36,431 | 53,631 | 108,408 | 159,425 |
| Minus: | ||||
| Amortization of capitalized loan costs | 2,469 | 2,515 | 7,405 | 7,008 |
| EBITDA | 102,956 | (84,137) | 329,583 | (183,120) |
| Add: | ||||
| Restructuring charges | 2,647 | 11,472 | 5,921 | 12,740 |
| Minus: | ||||
| Net income (loss) attributable to noncontrolling interest | 10 | (284) | 230 | 790 |
| Adjusted EBITDA | $ 105,593 | $ (72,381) | $ 335,274 | $ (171,170) |
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