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Actionable news in PPC: Pilgrim's Pride Corporation,

Pilgrim’s Pride: Greeley, Colo., April 27, 2016 (Globe Newswire) - Pilgrim’S Pride Corporation (Nasdaq: Ppc) Reports First Quarter 2016 Financial Results First Quarter Highlights

The following excerpt is from the company's SEC filing.

Net Sales of $1.96 billion.

Net Income of $118.4 million, GAAP EPS of $0.46.

EBIT margins of 10.5% in U.S. and 4.8% in Mexico operations, respectively.

Adjusted EBITDA of $233.5 million (or an 11.9% margin).

Free Cash Flow of $141.3 million.

Conversion of a production facility to USDA-certified organic chicken, enhancing PPC leadership in emerging consumer trends and leveraging partnerships with key customers to support their growth.

Unaudited, In Millions, Except Per Share and Percentages

Thirteen Weeks Ended

March 27, 2016

Change

$1,962.9

$2,052.9

Operating Income

$188.8

$327.6

-42.4%

Adjusted EBITDA (1)

$363.5

-35.8%

Adjusted EBITDA Margin

-5.9pts

Reconciliations for non-GAAP measures are provided in subsequent sections within this release.

“Our U.S. and Mexican businesses improved sequentially in Q1 following a challenging Q4, putting us in a strong position for Q2. While market conditions contributed to the improvement, our well-balanced portfolio played a key factor in delivering the improved Q1 performance since we were able to leverage the strength in specific market segments while minimizing the impact of the others,” stated Bill Lovette, Chief Executive Officer of Pilgrim's.

“Leveraging our leadership in the ABF market and our partnership with Key customers, we are excited to announce that we have begun work on converting one of our facilities to produce USDA-certified organic chicken. We are committed to deploy valuable resources, when necessary, to accelerate our growth by offering creative solutions to fulfill emerging consumer demand preference trends for more natural products such as ABF and organic chicken. We continue to believe our portfolio strategy, combined with our approach of being a valued partner with key customers and pursuing operational excellence while strategically growing value-added exports, will allow us to deliver less volatility and higher earnings to our shareholders over time.”

“In Mexico, we continue to see improvements in market conditions year to date, and we are on target in integrating the new assets and realizing announced synergies. We will continue to seek new opportunities to position us to be a much stronger player in all geographies, meet future demand growth in the region, and give us the best portfolio to serve the Mexican consumers.”

“Within Prepared Foods, our vision of sustainable growth remains intact. With the well-regarded Pierce brand playing a central role and the addition of a new fully-cooked line at our Moorefield, WV complex scheduled for completion late this year, we are on track to expand margins and increase our footprint to new accounts where we did not have prior presence.”

Conference Call Information

A conference call to discuss Pilgrim’s quarterly results will be held tomorrow, April 28, at 7:00 a.m. MT (9 a.m. ET). 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/ppc160428

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 (866) 777-2509 within the US, or +1 (412) 317-5413, 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

. The webcast will be available for replay through July 28, 2016.

About Pilgrim’s Pride

Pilgrim’s employs approximately 37,900 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. For more information, please visit

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 considered forward-looking statements. It is important to note that 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 anti-dumping proceedings and countervailing duty proceedings; 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.

Contact:

Dunham Winoto

Director, Investor Relations

IRPPC@pilgrims.com

(970) 506-8192

PILGRIM’S PRIDE CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

March 27, 2016

December 27, 2015

(Unaudited)

(In thousands)

Cash and cash equivalents

574,888

439,638

Trade accounts and other receivables, less allowance for doubtful accounts

347,401

348,994

Account receivable from related parties

Inventories

778,528

801,357

Income taxes receivable

24,105

71,410

Prepaid expenses and other current assets

76,210

75,602

Assets held for sale

Total current assets

1,813,842

1,746,224

Other long-lived assets

15,982

15,672

Identified intangible assets, net

44,458

47,453

Goodwill

161,578

156,565

Property, plant and equipment, net

1,350,890

1,352,529

Total assets

3,386,750

3,318,443

Notes payable to banks

21,577

28,726

Accounts payable

471,952

482,954

Account payable to related parties

Accrued expenses and other current liabilities

279,249

314,966

Income taxes payable

20,810

13,228

Current maturities of long-term debt

Total current liabilities

795,330

846,960

Long-term debt, less current maturities

986,400

985,509

Deferred tax liabilities

132,755

131,882

Other long-term liabilities

101,076

92,282

Total liabilities

2,015,561

2,056,633

Common stock

Treasury stock

(101,890

(99,233

Additional paid-in capital

1,676,554

1,675,674

Retained earnings (accumulated deficit)

(142,881

(261,252

Accumulated other comprehensive loss

(65,785

(58,930

Total Pilgrim’s Pride Corporation stockholders’ equity

1,368,595

1,258,856

Noncontrolling interest

Total stockholders’ equity

1,371,189

1,261,810

Total liabilities and stockholders’ equity

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

March 29, 2015

(In thousands, except per share data)

Net sales

1,962,937

2,052,919

Cost of sales

1,725,375

1,675,799

Gross profit

237,562

377,120

Selling, general and administrative expense

48,788

49,507

Operating income

188,774

327,613

Interest expense, net of capitalized interest

12,033

Interest income

(1,490

Foreign currency transaction loss (gain)

Miscellaneous, net

(2,946

Income before income taxes

180,615

315,687

Income tax expense

62,604

111,494

Net income

118,011

204,193

Less: Net income (loss) attributable to noncontrolling interests

Net income attributable to Pilgrim’s Pride Corporation

118,371

204,215

Weighted average shares of common stock outstanding:

254,807

259,653

Effect of dilutive common stock equivalents

Diluted

255,147

259,929

Net income attributable to Pilgrim's Pride Corporation per share of

common stock outstanding:

PILGRIM’S PRIDE CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

Cash flows from operating activities:

Adjustments to reconcile net income to cash provided by operating activities:

Depreciation and amortization

42,391

36,152

Foreign currency transaction losses

12,074

Loss (gain) on property disposals

Share-based compensation

Deferred income tax benefit

(2,408

Changes in operating assets and liabilities:

(1,894

13,289

22,829

(2,313

Accounts payable, accrued expenses and other current liabilities

(55,990

(28,702

55,261

50,639

Long-term pension and other postretirement obligations

(2,311

Other operating assets and liabilities

Cash provided by operating activities

177,863

296,086

Cash flows from investing activities:

Acquisitions of property, plant and equipment

(37,074

(32,591

Proceeds from property disposals

Cash provided by (used in) investing activities

(36,464

(31,724

Cash flows from financing activities:

Proceeds from note payable to bank

Payments on note payable to bank

(16,034

Proceeds from revolving line of credit

1,680,000

Payments on revolving line of credit, long-term borrowings and capital lease obligations

(533,669

Proceeds from equity contribution under Tax Sharing Agreement between JBS USA Food Company Holdings and Pilgrim's Pride Corporation

Tax benefit related to share-based compensation

Payment of capitalized loan costs

(8,862

Purchase of treasury stock

(2,657

Cash dividends

(1,498,470

Cash used in financing activities

(6,149

(353,167

Effect of exchange rate changes on cash and cash equivalents

(9,301

Increase (decrease) in cash and cash equivalents

135,250

(98,106

Cash and cash equivalents, beginning of period

576,143

Cash and cash equivalents, end of period

478,037

Selected Financial Information

“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.

PILGRIM'S PRIDE CORPORATION

Reconciliation of Adjusted EBITDA

11,340

Income tax expense (benefit)

Minus:

Amortization of capitalized financing costs

233,418

354,479

Foreign currency transaction losses (gains)

Restructuring charges

Net income (loss) attributable to noncontrolling interest

233,543

363,475

The summary unaudited consolidated income statement data for the twelve months ended March 27, 2016 (the LTM Period) have been calculated by subtracting the applicable unaudited consolidated income statement data for the three months ended March 29, 2015 from the sum of (1) the applicable audited consolidated income statement data for the year ended December 27, 2015 and (2) the applicable audited consolidated income statement data for the three months ended March 27, 2016.

Reconciliation of LTM Adjusted EBITDA

LTM Ended

June 28,

September 27,

241,624

137,095

63,050

559,780

10,237

10,182

10,091

41,850

129,104

73,153

33,045

297,906

38,918

41,415

42,490

165,214

419,019

260,726

147,746

1,060,909

12,773

16,731

425,756

274,258

149,978

1,083,535

EBITDA margins have been calculated using by taking the unaudited EBITDA figures and income statement components, then dividing by Net Revenue for the applicable period.

Reconciliation of EBITDA Margin

Net income from continuing operations

Net Revenue:

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:

Reconciliation of Adjusted Earnings

Net income (loss) attributable to Pilgrim's Pride Corporation

Loss on early extinguishment of debt

Income (loss) before loss on early extinguishment of debt and foreign currency transaction losses (gains)

118,136

213,257

Weighted average diluted shares of common stock outstanding

per common diluted share

A reconciliation of GAAP earnings per share (EPS) to adjusted earnings per share (EPS) is as follows:

Reconciliation of GAAP EPS to Adjusted EPS

Net debt is defined as total long term debt less current maturities, plus current maturities of long term debt and notes payable, minus cash, cash equivalents and investments in available-for-sale securities. Net debt is presented because it is used by management, and we believe it is frequently used by securities analysts, investors and other parties, in addition to and not in lieu of debt as presented under GAAP, to compare the indebtedness of companies. A reconciliation of net debt is as follows:

Reconciliation of Net Debt

December 29,

December 28,

Long term debt, less current maturities

501,999

1,150,441

Add: Current maturities of long term debt and notes payable

410,234

28,812

21,665

Minus: Cash and cash equivalents

508,206

Minus: Available-for-sale securities

96,902

Net debt (cash position)

307,125

(571,901

574,683

672,537

433,177

Supplementary Selected Segment and Geographic Data

Sources of net sales by country of origin:

1,670,281

1,842,758

Mexico:

292,656

210,161

Total net sales:

Sources of cost of sales by country of origin:

1,453,955

1,504,207

271,444

171,616

Elimination:

Total cost of sales:

Sources of gross profit by country of origin:

216,326

338,551

21,212

38,545

Total gross profit:

The above information was disclosed in a filing to the SEC. To see the filing, click here.

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Other recent filings from the company include the following:

Pilgrim's Pride: Pilgrim’S Pride Corporation Financial Results For First Quarter Ended March 27, 2016 - April 28, 2016
Quarterly report [Sections 13 or 15(d)] - April 28, 2016