Sign In  |  Register  |  About Menlo Park  |  Contact Us

Menlo Park, CA
September 01, 2020 1:28pm
7-Day Forecast | Traffic
  • Search Hotels in Menlo Park

  • CHECK-IN:
  • CHECK-OUT:
  • ROOMS:

Pilgrim’s Pride Reports Second Quarter 2023 Results with $4.3 Billion in Net Sales and Operating Income of $100.3 Million

GREELEY, Colo., July 26, 2023 (GLOBE NEWSWIRE) -- Pilgrim’s Pride Corporation (NASDAQ: PPC), one of the world's largest poultry producers, reports its second quarter 2023 financial results.

Second Quarter Highlights

  • Net Sales of $4.3 billion.
  • GAAP Net Income of $60.9 million and GAAP EPS of $0.25. Adjusted Net Income of $105.3 million and Adjusted EPS of $0.44.
  • Consolidated GAAP operating income margin of 2.3%.
  • Adjusted EBITDA of $248.7 million, or a 5.8% margin, with adjusted EBITDA margins of 4.6% in the U.S., 5.2% in the U.K. & Europe, and 12.2% in Mexico.
  • All regions improved financial performance relative to prior quarter given operational excellence efforts, our portfolio diversification, higher attribute programs and branded offerings, in partnership with our Key Customers.
  • The diversification across bird sizes and our operational excellence efforts enabled margin growth in our U.S. Fresh business relative to prior quarter, despite continuing challenging market conditions in the commodity Big Bird business.
  • Our U.S. Prepared Foods business momentum continued in branded fully cooked products as Just Bare® and Pilgrim’s® collectively grew over 56% year over year, with E-commerce remaining a driving force in their growth as sales increased 125% year over year.
  • Our U.K. and Europe business continue its margin growth trajectory, given benefits from our ongoing manufacturing network optimization program, growth with Key Customers, and synergies from back office integration.
  • Mexico improved as supply and demand fundamentals became increasingly balanced and challenges from live operations are reduced, while we continue to grow our value-added programs and brands.
  • Our organic growth programs to support our Key Customers and our strategy of portfolio diversification remain on track.   Both our expansion project at our Athens, Georgia facility and our new protein conversion plant in South Georgia remain on track to be fully operational by the beginning of 2024.
  • Our leadership journey in Sustainability continued as we completed an inventory of our GHG emissions footprint for our global supply chain and implemented a variety of programs and systems to reduce our energy usage which will be highlighted in our 2022 Sustainability Report to be published in the third quarter.

(Unaudited) Three Months Ended Six Months Ended
  June 25,
2023
 June 26,
2022
 Y/Y Change June 25,
2023
 June 26,
2022
 Y/Y Change
  (In millions, except per share and percentages)
Net sales $4,308.1  $4,631.6  (7.0)% $8,473.7  $8,872.0  (4.5)%
U.S. GAAP EPS $0.25  $1.50  (83.3)% $0.28  $2.65  (89.4)%
Operating income $100.3  $512.9  (80.4)% $131.6  $914.9  (85.6)%
Adjusted EBITDA(1) $248.7  $623.3  (60.1)% $400.7  $1,125.0  (64.4)%
Adjusted EBITDA margin(1)  5.8%  13.5% -7.7pts  4.7%  12.7% -8.0pts
                     
(1)   Reconciliations for non-U.S. GAAP measures are provided in subsequent sections within this release.
 

“Throughout the past 12 months, our consistent execution and focus on portfolio diversification, growth with Key Customers, and operational excellence has been instrumental in our ability to navigate extremely volatile market conditions.   Our business profitability increased quarter over quarter yet again despite challenges in overall protein availability and lingering inflation,” said Fabio Sandri, Chief Executive Officer.

In the U.S., margins significantly improved from the first quarter despite continuing challenges in the market conditions of the commodity Big Bird segment, given an intense focus on our operational excellence efforts.   Case Ready and Small Bird maintained steady performance while cultivating promotional activity and growth with Key Customers. Prepared Foods continues its branded momentum as Just Bare® and Pilgrim’s® sales collectively grew over 56% from last year.

“Q2 was still challenging for the commodity segment. Although market conditions have recently improved, the team is in the process of executing a variety of action items to further drive operational excellence.   We maintain our commitment to profitable growth through our continued investment in automation, expansion at our Athens, Georgia facility, and construction of a new protein conversion plant in South Georgia,” remarked Fabio Sandri.

As for the U.K. and Europe business, momentum continued as profitability grew for the fifth straight quarter given benefits from recent network optimization, continued cost recovery efforts, and growth with Key Customers through innovation and strong service levels.

“Throughout the past year, the team has been exceptionally diligent in driving cost efficiencies throughout our manufacturing network, recovery of inflationary impacts, and synergies from back office integration.   We are pleased with the remarkable progress over the past year, we will continue to explore opportunities to profitably grow our business,” said Fabio Sandri.

Mexico results improved relative to both first quarter and prior year as supply and demand fundamentals became progressively balanced, overall live performance improved, and interest in our branded offerings increased.  

“Throughout the past several quarters, Mexico maintained strong service levels to Key Customers and grew its branded presence despite challenges in live operations.   We commend the team for their rapid response and operational excellence efforts to alleviate these issues.   Our continued investments in this region will further lessen future potential concerns and provide the foundation for additional profitable growth,” remarked Fabio Sandri.

Pilgrim’s continues to make progress in Sustainability as it recently completed an inventory of its GHG emissions footprint.   These efforts have been further amplified by energy audits, installation of metering systems, and training at its US locations.     

“The completion of our GHG inventory strengthens the foundation to reduce our emissions footprint throughout our supply chain. Equally important, we have implemented a variety of tools and management processes to evaluate our progress and identify additional opportunities in our production facilities,” said Fabio Sandri.  

Conference Call Information

A conference call to discuss Pilgrim’s quarterly results will be held tomorrow, July 27, 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: https://services.choruscall.com/links/ppc230727.html

You may also reach the pre-registration link by logging in through the investor section of our website at https://ir.pilgrims.com in the “Events & Presentations” section.

For those who would like to join the call but have not pre-registered, access is available by dialing +1 (844) 883-3889 within the US, or +1 (412) 317-9245 internationally, and requesting the “Pilgrim’s Pride Conference.”

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.

About Pilgrim’s Pride

Pilgrim’s employs approximately 62,000 people and operates protein processing plants and prepared-foods facilities in 14 states, Puerto Rico, Mexico, the U.K, the Republic of Ireland and continental Europe. The Company’s primary distribution is through retailers and foodservice distributors. For more information, please visit www.pilgrims.com.

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. Without limiting the foregoing, words such as “anticipates,” “believes,” “estimates,” “expects,” “intends,” “may,” “plans,” “projects,” “should,” “targets,” “will” and the negative thereof and similar words and expressions are intended to identify 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: the impact of the COVID-19 pandemic, efforts to contain the pandemic and resulting economic downturn on our operations and financial condition, including the risk that our health and safety measures at Pilgrim’s Pride production facilities will not be effective, the risk that we may be unable to prevent the infection of our employees at these facilities, and the risk that we may need to temporarily close one or more of our production facilities; the risk that we may experience decreased production and sales due to the changing demand for food products; the risk that we may face a significant increase in delayed payments from our customers; and additional risks related to COVID-19 set forth in our most recent Form 10-K and Form 10-Q filed with the SEC; 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 channels, including, but not limited to, the impacts of the Russia-Ukraine conflict; the risk of cyber-attacks, natural disasters, power losses, unauthorized access, telecommunication failures, and other problems on our information systems; and the impact of uncertainties of litigation and other legal matters described in our most recent Form 10-K and Form 10-Q, including the In re Broiler Chicken Antitrust Litigation, as well as other risks described under “Risk Factors” in the Company’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and subsequent filings with the Securities and Exchange Commission. The forward-looking statements in this release speak only as of the date hereof, and the Company undertakes no obligation to update any such statement after the date of this release, whether as a result of new information, future developments or otherwise, except as may be required by applicable law.

Contact:Andrew Rojeski
 Head of Strategy, Investor Relations, & Net Zero Programs
 IRPPC@pilgrims.com
 www.pilgrims.com


PILGRIM’S PRIDE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
     
  (Unaudited)  
  June 25, 2023 December 25, 2022
  (In thousands)
Cash and cash equivalents $730,980  $400,988 
Restricted cash and restricted cash equivalents  46,030   33,771 
Trade accounts and other receivables, less allowance for credit losses  1,163,425   1,097,212 
Accounts receivable from related parties  1,697   2,512 
Inventories  2,047,817   1,990,184 
Income taxes receivable  133,747   155,859 
Prepaid expenses and other current assets  241,138   211,092 
Total current assets  4,364,834   3,891,618 
Deferred tax assets  17,949   1,969 
Other long-lived assets  21,989   41,574 
Operating lease assets, net  281,159   305,798 
Intangible assets, net  868,095   846,020 
Goodwill  1,282,946   1,227,944 
Property, plant and equipment, net  3,085,539   2,940,846 
Total assets $9,922,511  $9,255,769 
     
Accounts payable $1,515,540  $1,587,939 
Accounts payable to related parties  14,718   12,155 
Revenue contract liabilities  61,233   34,486 
Accrued expenses and other current liabilities  934,396   850,899 
Income taxes payable  15,487   58,411 
Current maturities of long-term debt  985   26,279 
Total current liabilities  2,542,359   2,570,169 
Noncurrent operating lease liabilities, less current maturities  213,350   230,701 
Long-term debt, less current maturities  3,699,607   3,166,432 
Deferred tax liabilities  336,579   364,184 
Other long-term liabilities  58,028   71,007 
Total liabilities  6,849,923   6,402,493 
Common stock  2,619   2,617 
Treasury stock  (544,687)  (544,687)
Additional paid-in capital  1,973,498   1,969,833 
Retained earnings  1,815,142   1,749,499 
Accumulated other comprehensive loss  (187,342)  (336,448)
Total Pilgrim’s Pride Corporation stockholders’ equity  3,059,230   2,840,814 
Noncontrolling interest  13,358   12,462 
Total stockholders’ equity  3,072,588   2,853,276 
Total liabilities and stockholders’ equity $9,922,511  $9,255,769 


PILGRIM’S PRIDE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
         
  Three Months Ended Six Months Ended
  June 25, 2023 June 26, 2022 June 25, 2023 June 26, 2022
  (In thousands, except per share data)
Net sales $4,308,091  $4,631,648  $8,473,719  $8,872,043 
Cost of sales  4,029,666   3,954,877   8,022,247   7,653,292 
Gross profit  278,425   676,771   451,472   1,218,751 
Selling, general and administrative expense  148,436   163,867   282,114   303,834 
Restructuring activities  29,718      37,744    
Operating income  100,271   512,904   131,614   914,917 
Interest expense, net of capitalized interest  47,152   38,112   89,814   74,408 
Interest income  (7,628)  (1,010)  (11,228)  (2,284)
Foreign currency transaction losses  16,395   2,758   34,538   14,294 
Miscellaneous, net  (1,331)  (1,688)  (23,984)  (2,012)
Income before income taxes  45,683   474,732   42,474   830,511 
Income tax expense (benefit)  (15,225)  112,711   (24,065)  187,930 
Net income  60,908   362,021   66,539   642,581 
Less: Net income (loss) attributable to noncontrolling interests  452   (95)  896   27 
Net income attributable to Pilgrim’s Pride Corporation $60,456  $362,116  $65,643  $642,554 
         
Weighted average shares of Pilgrim's Pride Corporation common stock outstanding:        
Basic  236,733   240,366   236,659   242,018 
Effect of dilutive common stock equivalents  476   607   527   619 
Diluted  237,209   240,973   237,186   242,637 
         
Net income attributable to Pilgrim's Pride Corporation per share of common stock outstanding:        
Basic $0.26  $1.51  $0.28  $2.65 
Diluted $0.25  $1.50  $0.28  $2.65 


PILGRIM’S PRIDE CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
 
  Six Months Ended
  June 25, 2023 June 26, 2022
  (In thousands)
Cash flows from operating activities:    
Net income $66,539  $642,581 
Adjustments to reconcile net income to cash provided by operating activities:    
Depreciation and amortization  203,114   201,996 
Deferred income tax benefit  (56,151)  (35,538)
Loss (gain) on property disposals  (9,316)  2,718 
Loan cost amortization  4,733   2,827 
Asset impairment  4,011    
Stock-based compensation  3,300   4,346 
Accretion of discount related to Senior Notes  980   859 
Loss on equity-method investments  328   4 
Changes in operating assets and liabilities:    
Trade accounts and other receivables  (54,971)  (216,523)
Inventories  (45,242)  (309,360)
Prepaid expenses and other current assets  (27,754)  13,173 
Accounts payable, accrued expenses and other current liabilities  5,139   96,083 
Income taxes  9,933   21,959 
Long-term pension and other postretirement obligations  944   (1,717)
Other operating assets and liabilities  (16,246)  (2,189)
Cash provided by operating activities  89,341   421,219 
Cash flows from investing activities:    
Acquisitions of property, plant and equipment  (286,630)  (196,205)
Proceeds from insurance recoveries  20,681    
Proceeds from property disposals  15,008   2,362 
Purchase of acquired business, net of cash acquired     (4,847)
Cash used in investing activities  (250,941)  (198,690)
Cash flows from financing activities:    
Proceeds from revolving line of credit and long-term borrowings  1,078,032   351,065 
Payments on revolving line of credit, long-term borrowings and finance lease obligations  (565,658)  (170,022)
Payments of capitalized loan costs  (10,353)  (3,052)
Payment of equity distribution under Tax Sharing Agreement between JBS USA Holdings and Pilgrim’s Pride Corporation  (1,592)  (1,961)
Purchase of common stock under share repurchase program     (119,989)
Cash provided by financing activities  500,429   56,041 
Effect of exchange rate changes on cash and cash equivalents  3,422   (6,067)
Increase in cash, cash equivalents and restricted cash  342,251   272,503 
Cash, cash equivalents and restricted cash, beginning of period  434,759   450,121 
Cash, cash equivalents and restricted cash, end of period $777,010  $722,624 

PILGRIM’S PRIDE CORPORATION

Non-GAAP Financial Measures Reconciliation

(Unaudited)

“EBITDA” is defined as the sum of net income 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: (1) foreign currency transaction losses, (2) costs related to litigation settlements, (3) restructuring activities losses, (4) transaction costs related to acquisitions, (5) property insurance recoveries for Mayfield, Kentucky tornado property damage losses, and (6) 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 U.S. (“U.S. 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 applicable to continuing operations. The Company also believes that Adjusted EBITDA, in combination with the Company’s financial results calculated in accordance with U.S. 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 U.S. GAAP. EBITDA and Adjusted EBITDA have limitations as analytical tools and should not be considered in isolation or as substitutes for an analysis of our results as reported under U.S. GAAP. In addition, other companies in our industry may calculate these measures differently limiting their usefulness as a comparative measure. Because of these limitations, EBITDA and Adjusted EBITDA should not be considered as an alternative to net income as indicators of our operating performance or any other measures of performance derived in accordance with U.S. GAAP. These limitations should be compensated for by relying primarily on our U.S. GAAP results and using EBITDA and Adjusted EBITDA only on a supplemental basis.

PILGRIM'S PRIDE CORPORATION
Reconciliation of Adjusted EBITDA
(Unaudited)
        
 Three Months Ended Six Months Ended
 June 25, 2023 June 26, 2022 June 25, 2023 June 26, 2022
 (In thousands)
Net income$60,908  $362,021  $66,539  $642,581
Add:       
Interest expense, net(a) 39,524   37,102   78,586   72,124
Income tax expense (benefit) (15,225)  112,711   (24,065)  187,930
Depreciation and amortization 104,857   99,854   203,114   201,996
EBITDA 190,064   611,688   324,174   1,104,631
Add:       
Foreign currency transaction losses(b) 16,395   2,758   34,538   14,294
Litigation settlements(c) 13,000   8,482   24,200   8,982
Restructuring activities losses(d) 29,718      37,744   
Transaction costs related to acquisitions(e)    255      972
Minus:       
Property insurance recoveries for Mayfield tornado losses(f)       19,086   3,815
Net income (loss) attributable to noncontrolling interest 452   (95)  896   27
Adjusted EBITDA$248,725  $623,278  $400,674  $1,125,037


(a)Interest expense, net, consists of interest expense less interest income.
(b)The Company measures the financial statements of its Mexico reportable segment as if the U.S. dollar were the functional currency. Accordingly, we remeasure assets and liabilities, other than nonmonetary assets, of the Mexico reportable segment at current exchange rates. We remeasure nonmonetary assets using the historical exchange rate in effect on the date of each asset’s acquisition. Currency exchange gains or losses resulting from these remeasurements, as well as, from our U.K. and Europe reportable segment are included in the line item Foreign currency transaction losses in the Condensed Consolidated Statements of Income.
(c)This represents expenses recognized in anticipation of probable settlements in ongoing litigation.
(d)Restructuring activities losses are primarily related to restructuring initiatives at multiple production facilities throughout our U.K. and Europe reportable segment.
(e)Transaction costs related to acquisitions includes those charges that are incurred in conjunction with business acquisitions.
(f)This represents property insurance recoveries for the property damage losses incurred as a result of the tornado in Mayfield, KY in December 2021.
  

The summary unaudited consolidated income statement data for the twelve months ended June 25, 2023 (the LTM Period) have been calculated by subtracting the applicable unaudited consolidated income statement data for the six months ended June 26, 2022 from the sum of (1) the applicable audited consolidated income statement data for the year ended December 25, 2022 and (2) the applicable unaudited consolidated income statement data for the six months ended June 25, 2023.

PILGRIM'S PRIDE CORPORATION
Reconciliation of LTM Adjusted EBITDA
(Unaudited)
           
  Three Months Ended LTM Ended
  September 25,
2022
 December 25,
2022
 March 26,
2023
 June 25,
2023
 June 25,
2023
  (In thousands)
Net income (loss) $258,999 $(155,042) $5,631  $60,908  $170,496 
Add:          
Interest expense, net  34,222  37,298   39,062   39,524   150,106 
Income tax expense (benefit)  65,749  25,256   (8,840)  (15,225)  66,940 
Depreciation and amortization  98,966  102,148   98,257   104,857   404,228 
EBITDA  457,936  9,660   134,110   190,064   791,770 
Add:          
Foreign currency transaction losses  54  16,469   18,143   16,395   51,061 
Litigation settlements  19,300  5,804   11,200   13,000   49,304 
Restructuring activities losses    30,466   8,026   29,718   68,210 
Transaction costs related to acquisitions    (24)        (24)
Minus:          
Property insurance recoveries for Mayfield tornado losses  16,182  (417)  19,086      34,851 
Net income (loss) attributable to noncontrolling interest  647  (66)  444   452   1,477 
Adjusted EBITDA $460,461 $62,858  $151,949  $248,725  $923,993 
  

EBITDA margins have been calculated by taking the relevant unaudited EBITDA figures, then dividing by net sales for the applicable period. EBITDA margins are presented because they are used by management and we believe it is frequently used by securities analysts, investors and other interested parties, as a supplement to our results prepared in accordance with U.S. GAAP, to compare the performance of companies.

PILGRIM'S PRIDE CORPORATION
Reconciliation of EBITDA Margin
(Unaudited)
                 
  Three Months Ended Six Months Ended Three Months Ended Six Months Ended
  June 25, 2023 June 26, 2022 June 25, 2023 June 26, 2022 June 25, 2023 June 26, 2022 June 25, 2023 June 26, 2022
  (In thousands)
Net income $60,908  $362,021  $66,539  $642,581  1.41%  7.82%  0.79%  7.24%
Add:                
Interest expense, net  39,524   37,102   78,586   72,124  0.92%  0.80%  0.93%  0.81%
Income tax expense (benefit)  (15,225)  112,711   (24,065)  187,930 (0.35)        %  2.43% (0.28)        %  2.12%
Depreciation and amortization  104,857   99,854   203,114   201,996  2.43%  2.15%  2.39%  2.27%
EBITDA  190,064   611,688   324,174   1,104,631  4.41%  13.20%  3.83%  12.44%
Add:                
Foreign currency transaction losses  16,395   2,758   34,538   14,294  0.38%  0.05%  0.40%  0.16%
Litigation settlements  13,000   8,482   24,200   8,982  0.30%  0.18%  0.29%  0.10%
Restructuring activities losses  29,718      37,744     0.69%  %  0.45%  %
Transaction costs related to business acquisitions     255      972  %  0.01%  %  0.01%
Minus:                
Property insurance recoveries for Mayfield tornado losses        19,086   3,815  %  %  0.23%  0.04%
Net income attributable to noncontrolling interest  452   (95)  896   27  0.01%  %  0.01%  %
Adjusted EBITDA $248,725  $623,278  $400,674  $1,125,037  5.77%  13.44%  4.73%  12.67%
                 
Net sales $4,308,091  $4,631,648  $8,473,719  $8,872,043 $4,308,091  $4,631,648  $8,473,719  $8,872,043 
 

Adjusted EBITDA by segment figures s are presented because they are used by management and we believe they are frequently used by securities analysts, investors and other interested parties, as a supplement to our results prepared in accordance with U.S. GAAP, to compare the performance of companies.

PILGRIM'S PRIDE CORPORATION
Reconciliation of Adjusted EBITDA
(Unaudited)
                
 Three Months Ended Three Months Ended
 June 25, 2023 June 26, 2022
 U.S. U.K. & Europe Mexico Total U.S. U.K. & Europe Mexico Total
 (In thousands) (In thousands)
Net income (loss)$(21,335) $11,929  $70,314  $60,908  $308,386 $12,111  $41,524  $362,021 
Add:               
Interest expense, net(a) 43,538   (623)  (3,391)  39,524   35,944  454   704   37,102 
Income tax expense (benefit) (14,026)  (6,730)  5,531   (15,225)  102,557  (2,085)  12,239   112,711 
Depreciation and amortization 63,759   35,279   5,819   104,857   59,987  33,710   6,157   99,854 
EBITDA 71,936   39,855   78,273   190,064   506,874  44,190   60,624   611,688 
Add:               
Foreign currency transaction losses (gains)(b) 28,546   (1,482)  (10,669)  16,395   5,272  (1,637)  (877)  2,758 
Litigation settlements(c) 13,000         13,000   8,482        8,482 
Restructuring activities losses(d)    29,718      29,718            
Transaction costs related to acquisitions(e)             255        255 
Minus:               
Property insurance recoveries for Mayfield tornado losses(f)                      
Net income (loss) attributable to noncontrolling interest       452   452        (95)  (95)
Adjusted EBITDA$113,482  $68,091  $67,152  $248,725  $520,883 $42,553  $59,842  $623,278 


(a)Interest expense, net, consists of interest expense less interest income.
(b)The Company measures the financial statements of its Mexico reportable segment as if the U.S. dollar were the functional currency. Accordingly, we remeasure assets and liabilities, other than nonmonetary assets, of the Mexico reportable segment at current exchange rates. We remeasure nonmonetary assets using the historical exchange rate in effect on the date of each asset’s acquisition. Currency exchange gains or losses resulting from these remeasurements, as well as, from our U.K. and Europe reportable segment are included in the line item Foreign currency transaction losses in the Condensed Consolidated Statements of Income.
(c)This represents expenses recognized in anticipation of probable settlements in ongoing litigation.
(d)Restructuring activities losses are primarily related to restructuring initiatives at multiple production facilities throughout our U.K. and Europe reportable segment.
(e)Transaction costs related to acquisitions includes those charges that are incurred in conjunction with business acquisitions.
(f)This represents property insurance recoveries for the property damage losses incurred as a result of the tornado in Mayfield, KY in December 2021.


PILGRIM'S PRIDE CORPORATION
Reconciliation of Adjusted EBITDA
(Unaudited)
                
 Six Months Ended Six Months Ended
 June 25, 2023 June 26, 2022
 U.S. U.K. & Europe Mexico Total U.S. U.K. & Europe Mexico Total
 (In thousands) (In thousands)
Net income (loss)$(74,925) $32,742  $108,722  $66,539  $542,853 $262  $99,466  $642,581
Add:               
Interest expense, net(a) 84,903   (821)  (5,496)  78,586   71,310  1,036   (222)  72,124
Income tax expense (benefit) (30,848)  (807)  7,590   (24,065)  173,415  (11,716)  26,231   187,930
Depreciation and amortization 123,996   67,556   11,562   203,114   120,379  69,265   12,352   201,996
EBITDA 103,126   98,670   122,378   324,174   907,957  58,847   137,827   1,104,631
Add:               
Foreign currency transaction losses (gains)(b) 48,859   (2,098)  (12,223)  34,538   18,573  (1,641)  (2,638)  14,294
Litigation settlements(c) 24,200         24,200   8,982        8,982
Restructuring activities losses(d)    37,744      37,744           
Transaction costs related to acquisitions(e)             847  125      972
Minus:               
Property insurance recoveries for Mayfield tornado losses(f) 19,086         19,086   3,815        3,815
Net income attributable to noncontrolling interest       896   896        27   27
Adjusted EBITDA$157,099  $134,316  $109,259  $400,674  $932,544 $57,331  $135,162  $1,125,037


(a)Interest expense, net, consists of interest expense less interest income.
(b)The Company measures the financial statements of its Mexico reportable segment as if the U.S. dollar were the functional currency. Accordingly, we remeasure assets and liabilities, other than nonmonetary assets, of the Mexico reportable segment at current exchange rates. We remeasure nonmonetary assets using the historical exchange rate in effect on the date of each asset’s acquisition. Currency exchange gains or losses resulting from these remeasurements, as well as, from our U.K. and Europe reportable segment are included in the line item Foreign currency transaction losses in the Condensed Consolidated Statements of Income.
(c)This represents expenses recognized in anticipation of probable settlements in ongoing litigation.
(d)Restructuring activities losses are primarily related to restructuring initiatives at multiple production facilities throughout our U.K. and Europe reportable segment.
(e)Transaction costs related to acquisitions includes those charges that are incurred in conjunction with business acquisitions.
(f)This represents property insurance recoveries for the property damage losses incurred as a result of the tornado in Mayfield, KY in December 2021.


Adjusted Operating Income is calculated by adding to Operating Income certain items of expense and deducting from Operating Income certain items of income. Management believes that presentation of Adjusted Operating Income provides useful supplemental information about our operating performance and enables comparison of our performance between periods because certain costs shown below are not indicative of our current operating performance. A reconciliation of GAAP operating income to adjusted operating income as follows:

PILGRIM'S PRIDE CORPORATION
Reconciliation of Adjusted Operating Income
(Unaudited)
        
 Three Months Ended Six Months Ended
 June 25, 2023 June 26, 2022 June 25, 2023 June 26, 2022
 (In thousands)
GAAP operating income, U.S. operations$37,265  $453,198  $9,159  $808,273 
Litigation settlements 13,000   8,482   24,200   8,982 
Transaction costs related to acquisitions    255      847 
Adjusted operating income, U.S. operations$50,265  $461,935  $33,359  $818,102 
        
Adjusted operating income margin, U.S. operations 2.1%  15.9%  0.7%  14.9%
        
 Three Months Ended Six Months Ended
 June 25, 2023 June 26, 2022 June 25, 2023 June 26, 2022
 (In thousands)
GAAP operating income, U.K. and Europe operations$2,513  $7,848  $27,774  $(13,792)
Transaction costs related to acquisitions          125 
Restructuring activities losses 29,718      37,744    
Adjusted operating income, U.K. and Europe operations$32,231  $7,848  $65,518  $(13,667)
        
Adjusted operating income margin, U.K. and Europe operations 2.5%  0.6%  2.6% (0.6)%
        
 Three Months Ended Six Months Ended
 June 25, 2023 June 26, 2022 June 25, 2023 June 26, 2022
 (In thousands)
GAAP operating income, Mexico operations$60,719  $51,844  $94,894  $120,408 
No adjustments           
Adjusted operating income, Mexico operations$60,719  $51,844  $94,894  $120,408 
        
Adjusted operating income margin, Mexico operations 11.0%  10.7%  9.1%  12.6%
 

Adjusted Operating Income Margin for each of our reportable segments is calculated by dividing Adjusted operating income by Net Sales. Management believes that presentation of Adjusted Operating Income Margin provides useful supplemental information about our operating performance and enables comparison of our performance between periods because certain costs shown below are not indicative of our current operating performance. A reconciliation of GAAP operating income margin for each of our reportable segments to adjusted operating income margin for each of our reportable segments is as follows:

PILGRIM'S PRIDE CORPORATION
Reconciliation of GAAP Operating Income Margin to Adjusted Operating Income Margin
(Unaudited)
        
 Three Months Ended Six Months Ended
 June 25, 2023 June 26, 2022 June 25, 2023 June 26, 2022
 (In percent)
GAAP operating income margin, U.S. operations1.5% 15.6% 0.2% 14.7%
Litigation settlements0.6% 0.3% 0.5% 0.2%
Transaction costs related to acquisitions% % % %
Adjusted operating income margin, U.S. operations2.1% 15.9% 0.7% 14.9%
        
 Three Months Ended Six Months Ended
 June 25, 2023 June 26, 2022 June 25, 2023 June 26, 2022
 (In percent)
GAAP operating income margin, U.K. and Europe operations0.2% 0.6% 1.1% (0.6)%
Litigation settlements% % % %
Restructuring activities losses2.3% % 1.5% %
Adjusted operating income margin, U.K. and Europe operations2.5% 0.6% 2.6% (0.6)%
        
 Three Months Ended Six Months Ended
 June 25, 2023 June 26, 2022 June 25, 2023 June 26, 2022
 (In percent)
GAAP operating income margin, Mexico operations11.0% 10.7% 9.1% 12.6%
No adjustments% % % %
Adjusted operating income margin, Mexico operations11.0% 10.7% 9.1% 12.6%
  

Adjusted net income attributable to Pilgrim's Pride Corporation (“Pilgrim's”) is calculated by adding to Net income (loss) attributable to Pilgrim's certain items of expense and deducting from Net income (loss) attributable to Pilgrim's certain items of income, as shown below in the table. Adjusted net income attributable to Pilgrim’s Pride Corporation per common diluted share 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 U.S. GAAP, to compare the performance of companies. Management also believe that this non-U.S. GAAP financial measure, in combination with our financial results calculated in accordance with U.S. GAAP, provides investors with additional perspective regarding the impact of such charges on net income attributable to Pilgrim’s Pride Corporation per common diluted share. Adjusted net income attributable to Pilgrim’s Pride Corporation per common diluted share is not a measurement of financial performance under U.S. GAAP, has limitations as an analytical tool and should not be considered in isolation or as a substitute for an analysis of our results as reported under U.S. GAAP. Management believes that presentation of adjusted net income attributable to Pilgrim’s provides useful supplemental information about our operating performance and enables comparison of our performance between periods because certain costs shown below are not indicative of our current operating performance. A reconciliation of net income (loss) attributable to Pilgrim’s Pride Corporation per common diluted share to adjusted net income attributable to Pilgrim’s Pride Corporation per common diluted share is as follows:

PILGRIM'S PRIDE CORPORATION
Reconciliation of Adjusted Net Income
(Unaudited)
        
 Three Months Ended Six Months Ended
 June 25, 2023 June 26, 2022 June 25, 2023 June 26, 2022
 (In thousands, except per share data)
Net income attributable to Pilgrim's$60,456  $362,116  $65,643  $642,554 
Add:       
Foreign currency transaction losses 16,395   2,758   34,538   14,294 
Litigation settlements 13,000   8,482   24,200   8,982 
Restructuring activities losses 29,718      37,744    
Transaction costs related to acquisitions    255      972 
Minus:       
Property insurance recoveries for Mayfield tornado losses       19,086   3,815 
Adjusted net income attributable to Pilgrim's before tax impact of adjustments 119,569   373,611   143,039   662,987 
Net tax impact of adjustments(a) (14,306)  (2,863)  (18,729)  (5,090)
Adjusted net income attributable to Pilgrim's$105,263  $370,748  $124,310  $657,897 
Weighted average diluted shares of common stock outstanding 237,209   240,973   237,186   242,637 
Adjusted net income attributable to Pilgrim's per common diluted share$0.44  $1.54  $0.52  $2.71 
 
(a)   Net tax expense (benefit) of adjustments represents the tax impact of all adjustments shown above.

       

Adjusted EPS is calculated by dividing the adjusted net income attributable to Pilgrim's stockholders by the weighted average number of diluted shares. Management believes that Adjusted EPS provides useful supplemental information about our operating performance and enables comparison of our performance between periods because certain costs shown below are not indicative of our current operating performance. A reconciliation of U.S. GAAP to non-U.S. GAAP financial measures is as follows:

PILGRIM'S PRIDE CORPORATION
Reconciliation of GAAP EPS to Adjusted EPS
(Unaudited)
        
 Three Months Ended Six Months Ended
 June 25, 2023 June 26, 2022 June 25, 2023 June 26, 2022
 (In thousands, except per share data)
GAAP EPS$0.25  $1.50  $0.28  $2.65 
Add:       
Foreign currency transaction losses 0.07   0.01   0.15   0.06 
Litigation settlements 0.05   0.04   0.09   0.04 
Restructuring activities losses 0.13      0.16    
Transaction costs related to acquisitions           
Minus:       
Property insurance recoveries for Mayfield tornado losses       0.08   0.02 
Adjusted EPS before tax impact of adjustments 0.50   1.55   0.60   2.73 
Net tax impact of adjustments(a) (0.06)  (0.01)  (0.08)  (0.02)
Adjusted EPS$0.44  $1.54  $0.52  $2.71 
        
Weighted average diluted shares of common stock outstanding 237,209   240,973   237,186   242,637 
 
(a)    Net tax impact of adjustments represents the tax impact of all adjustments shown above.


PILGRIM'S PRIDE CORPORATION
Supplementary Selected Segment and Geographic Data
(Unaudited)
         
  Three Months Ended Six Months Ended
  June 25, 2023 June 26, 2022 June 25, 2023 June 26, 2022
  (In thousands)
Sources of net sales by geographic region of origin:        
U.S. $2,446,208  $2,899,879  $4,878,776  $5,481,087 
U.K. and Europe  1,310,750   1,245,052   2,550,014   2,437,034 
Mexico  551,133   486,717   1,044,929   953,922 
Total net sales $4,308,091  $4,631,648  $8,473,719  $8,872,043 
         
Sources of cost of sales by geographic region of origin:        
U.S. $2,332,103  $2,355,243  $4,726,342  $4,514,447 
U.K. and Europe  1,223,722   1,176,097   2,378,793   2,329,000 
Mexico  473,615   423,551   916,899   809,873 
Elimination  226   (14)  213   (28)
Total cost of sales $4,029,666  $3,954,877  $8,022,247  $7,653,292 
         
Sources of gross profit by geographic region of origin:        
U.S. $114,105  $544,636  $152,434  $966,640 
U.K. and Europe  87,028   68,955   171,221   108,034 
Mexico  77,518   63,166   128,030   144,049 
Elimination  (226)  14   (213)  28 
Total gross profit $278,425  $676,771  $451,472  $1,218,751 
         
Sources of operating income (loss) by geographic region of origin:        
U.S. $37,265  $453,198  $9,159  $808,273 
U.K. and Europe  2,513   7,848   27,774   (13,792)
Mexico  60,719   51,844   94,894   120,408 
Elimination  (226)  14   (213)  28 
Total operating income $100,271  $512,904  $131,614  $914,917 

 


Primary Logo

Stock Quote API & Stock News API supplied by www.cloudquote.io
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
 
 
Copyright © 2010-2020 MenloPark.com & California Media Partners, LLC. All rights reserved.