Document


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of report (Date of earliest event reported): May 1, 2019
PILGRIM'S PRIDE CORPORATION
(Exact Name of registrant as specified in its charter)
Delaware
1-9273
75-1285071
(State or other jurisdiction of incorporation)
(Commission File Number)
(IRS Employer Identification No.)
 
 
 
1770 Promontory Circle
Greeley, CO
80634-9038
(Address of principal executive offices)
(Zip Code)
Registrant's telephone number, including area code: (970) 506-8000
Title of each class
 
Trading Symbol
 
Name of Exchange on Which Registered
Common Stock, Par Value $0.01
 
PPC
 
The NASDAQ Stock Market LLC
Not Applicable
(Former name or former address, if changed since last report.)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
 Emerging growth company o
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o






Item 2.02 Results of Operations and Financial Condition.
On May 1, 2019 the Registrant issued a press release, a copy of which is attached hereto as Exhibit 99.1 and incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits.
Exhibit 99.1 Press release dated May 1, 2019.






SIGNATURE  
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
 
PILGRIM’S PRIDE CORPORATION
 
 
 
 
Date:
May 1, 2019
 
/s/ Fabio Sandri
 
 
 
Fabio Sandri
 
 
 
Chief Financial Officer



Exhibit


http://api.tenkwizard.com/cgi/image?quest=1&rid=23&ipage=12873748&doc=4

http://api.tenkwizard.com/cgi/image?quest=1&rid=23&ipage=12873748&doc=3

Pilgrim’s Pride Reports Q1 Net Sales of $2.72 Billion, Operating Income of $137 Million and GAAP EPS of $0.34

GREELEY, Colo., May 1, 2019 (GLOBE NEWSWIRE) - Pilgrim’s Pride Corporation (NASDAQ: PPC) reports first quarter 2019 financial results.

First Quarter Highlights
Net Sales of $2.72 billion.
Net Income of $84.0 million.
Operating Income margins of 6.1% in U.S., 2.9% in Mexico and 2.5% in Europe operations, respectively.
Adjusted EBITDA of $204.4 million (or a 7.5% margin), and Adjusted EPS of $0.35.
Significant sequential rebound in U.S. operations vs. Q4, driven by stronger markets as feature activities tracked much closer to seasonality. Our balanced portfolio has continued to evolve, realizing the results of investments made over the past few years to further widen our products and brands, strengthen key customer relationships, and improve margin consistency.
Weaker than seasonal markets in Mexico impacted results but conditions are already improving in Q2. Diversification into premium Pilgrim’s brand is gaining momentum and producing strong results, together with significant growth in Prepared Foods.
In-line with the industry, Europe continued to be impacted by a substantial increase in input costs. We are offsetting the increase through capture of synergies and adjustments in pricing models.


1



Unaudited, In Millions, Except Per Share and Percentages
 
Thirteen Weeks Ended
 
Mar 31, 2019
 
Apr 1, 2018
 
Change
Net Sales
$2,724.7
 
$2,746.7
 
-0.8%
GAAP EPS
$0.34
 
$0.48
 
-29.2%
Operating Income
$137.0
 
$201.6
 
-32.0%
Adjusted EBITDA (1)
$204.4
 
$271.8
 
-24.8%
Adjusted EBITDA Margin (1)
7.5%
 
9.9%
 
-2.4pts
 
 
 
 
 
 
(1)
Reconciliations for non-GAAP measures are provided in subsequent sections within this release.

“After a very challenging market in 2018, we experienced a much better environment within our U.S. operations during Q1 particularly in commodity large bird deboning, with demand from retailers and QSR operators rebounding as they recognized the value of chicken. Feature activities normalized to seasonal levels throughout the quarter and the momentum has been sustained into early Q2. Commodity boneless prices have already surpassed levels from a year ago and are close to the five-year average, while wing prices are near historical highs. We have been heavily investing in further differentiating our portfolio to increase our capacities and capabilities to meet customer expectations. The investments in the operations and the focus of our people have yielded an increase in performance, and further growth prospects remain available. We are driving growth while continuing to pursue future opportunities by intensifying our efforts in innovation and marketing. We expect value added, differentiated products to account for a larger portion of our total results over the next few years as we continue to reduce the volatility of our commodity sales mix,” stated Jayson Penn, Chief Executive Officer of Pilgrim's.

“Market balance dynamics in Mexico were weaker than seasonal in Q1. Better than expected growing conditions and softer demand have impacted prices. Chicken demand was also affected by more availability of imported pork from the U.S. during the quarter but we believe chicken demand can continue to grow in-line with historical rates longer term. The environment has already started to recover in Q2 and prices have begun to react positively, with growing conditions reverting back to normal, demand improving, and competition from pork imports declining. Our Prepared Foods have continued to grow at a double digit rate and are generating great results under both premium Pilgrim’s and Del Dia brands to drive the evolution of our Mexican portfolio towards more differentiated, higher-value products giving us a clear path to margin expansion.”

“In-line with the whole industry, our European operations continued to be impacted by a substantial increase in input costs, including feed ingredients, higher utilities, labor and packaging. These increases were partially offset by cost reduction initiatives, synergies and price adjustments some of which have taken slightly longer than expected to be passed on and reflected in customer contracts. Despite the impact in results, we expect an improvement month over month as we adjust our prices based on key customer’s contracts and expect the full recovery within our pricing models.”

Conference Call Information

A conference call to discuss Pilgrim’s quarterly results will be held tomorrow, May 2, 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/ppc190502.html


2



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 (844) 883-3889 within the US, or +1 (412) 317-9245 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 August 2, 2019.

About Pilgrim’s Pride

Pilgrim’s employs approximately 52,100 people and operates chicken processing plants and prepared-foods facilities in 14 states, Puerto Rico, Mexico, the U.K, 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. 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.








3




Contact:
Dunham Winoto
 
Director, Investor Relations
 
IRPPC@pilgrims.com
 
(970) 506-8192
 
www.pilgrims.com


4




PILGRIM’S PRIDE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
 
 
 
March 31, 2019
 
December 30, 2018
 
 
(Unaudited)
 
 
 
 
(In thousands)
Cash and cash equivalents
 
$
378,518

 
$
338,386

Restricted cash and cash equivalents
 
20,373

 
23,192

Trade accounts and other receivables, less allowance for doubtful accounts
 
564,055

 
561,549

Accounts receivable from related parties
 
854

 
1,331

Inventories
 
1,166,002

 
1,159,519

Income taxes receivable
 
31,985

 
38,479

Prepaid expenses and other current assets
 
124,265

 
112,023

Assets held for sale
 
178

 
178

Total current assets
 
2,286,230

 
2,234,657

Deferred tax assets
 
4,166

 
4,248

Other long-lived assets
 
16,275

 
16,717

Identified intangible assets, net
 
569,870

 
564,128

Goodwill
 
970,640

 
949,750

Operating lease assets, net
 
330,040

 

Property, plant and equipment, net
 
2,195,706

 
2,161,702

Total assets
 
$
6,372,927

 
$
5,931,202

 
 
 
 
 
Accounts payable
 
$
818,482

 
$
830,059

Accounts payable to related parties
 
5,550

 
7,269

Revenue contract liability
 
25,812

 
33,328

Accrued expenses and other current liabilities
 
472,365

 
386,941

Income taxes payable
 
7,884

 
8,221

Current maturities of long-term debt
 
27,637

 
30,405

Total current liabilities
 
1,357,730

 
1,296,223

Noncurrent operating lease liability, less current maturities
 
252,281

 

Long-term debt, less current maturities
 
2,303,735

 
2,295,190

Noncurrent income taxes payable
 
7,731

 
7,731

Deferred tax liabilities
 
236,931

 
237,422

Other long-term liabilities
 
70,019

 
75,051

Total liabilities
 
4,228,427

 
3,911,617

Common stock
 
2,609

 
2,604

Treasury stock
 
(231,994
)
 
(231,994
)
Additional paid-in capital
 
1,947,013

 
1,945,136

Retained earnings
 
505,899

 
421,888

Accumulated other comprehensive loss
 
(88,926
)
 
(127,834
)
Total Pilgrim’s Pride Corporation stockholders’ equity
 
2,134,601

 
2,009,800

Noncontrolling interest
 
9,899

 
9,785

Total stockholders’ equity
 
2,144,500

 
2,019,585

Total liabilities and stockholders’ equity
 
$
6,372,927

 
$
5,931,202



5




PILGRIM’S PRIDE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
 
 
 
 
 
 
 
Thirteen Weeks Ended
 
 
March 31, 2019
 
April 1, 2018
 
 
(In thousands, except per share data)
Net sales
 
$
2,724,675

 
$
2,746,678

Cost of sales
 
2,505,736

 
2,459,013

Gross profit
 
218,939

 
287,665

Selling, general and administrative expense
 
81,924

 
85,283

Administrative restructuring activity
 
(27
)
 
789

Operating income
 
137,042

 
201,593

Interest expense, net of capitalized interest
 
33,562

 
50,300

Interest income
 
(3,340
)
 
(1,590
)
Foreign currency transaction losses (gains)
 
2,636

 
(1,721
)
Miscellaneous, net
 
(357
)
 
(1,617
)
Income before income taxes
 
104,541

 
156,221

Income tax expense
 
20,416

 
36,997

Net income
 
84,125

 
119,224

Less: Net income (loss) attributable to noncontrolling interests
 
114

 
(194
)
Net income attributable to Pilgrim’s Pride Corporation
 
$
84,011

 
$
119,418

 
 
 
 
 
Weighted average shares of common stock outstanding:
 
 
 
 
Basic
 
249,167

 
248,838

Effect of dilutive common stock equivalents
 
390

 
151

Diluted
 
249,557

 
248,989

 
 
 
 
 
Net income attributable to Pilgrim's Pride Corporation per share of
common stock outstanding:
 
 
 
 
Basic
 
$
0.34

 
$
0.48

Diluted
 
$
0.34

 
$
0.48



6



PILGRIM’S PRIDE CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
 
 
 
Fifty-three weeks ended
 
 
March 31, 2019
 
April 1, 2018
 
 
(In thousands)
Cash flows from operating activities:
 
 
 
 
Net income
 
$
84,125

 
$
119,224

Adjustments to reconcile net income to cash provided by operating activities:
 
 
 
 
Depreciation and amortization
 
67,182

 
67,444

Loan cost amortization
 
1,201

 
1,757

Noncash loss on early extinguishment of debt
 

 
3,918

Foreign currency transaction loss related to borrowing arrangements
 
(1,034
)
 
5,745

Amortization of premium related to Senior Notes
 
(167
)
 
(167
)
Accretion of discount related to Senior Notes
 
246

 
76

Impairment expense
 

 
470

Loss on property disposals
 
(108
)
 
80

Gain on equity method investment
 
(16
)
 
(16
)
Share-based compensation
 
1,882

 
1,273

Deferred income tax expense (benefit)
 
(4,089
)
 
(4,735
)
Changes in operating assets and liabilities:
 
 
 
 
Trade accounts and other receivables
 
2,381

 
(61,945
)
Inventories
 
(1,368
)
 
19,541

Prepaid expenses and other current assets
 
(11,479
)
 
(20,777
)
Accounts payable, accrued expenses and other current liabilities
 
(21,968
)
 
(29,171
)
Income taxes
 
6,579

 
(98,784
)
Long-term pension and other postretirement obligations
 
(1,315
)
 
(2,759
)
Other operating assets and liabilities
 
(1,683
)
 
(534
)
Cash provided by operating activities
 
120,369

 
640

Cash flows from investing activities:
 
 
 
 
Acquisitions of property, plant and equipment
 
(87,941
)
 
(76,681
)
Business acquisition
 

 

Proceeds from property disposals
 
539

 
1,021

Cash used in investing activities
 
(87,402
)
 
(75,660
)
Cash flows from financing activities:
 
 
 
 
Proceeds from revolving line of credit and long-term borrowings
 
67,193

 
502,341

Payments on revolving line of credit, long-term borrowings and capital lease obligations
 
(62,293
)
 
(433,550
)
Proceeds from equity contribution under Tax Sharing Agreement between JBS USA Food Company Holdings and Pilgrim's Pride Corporation
 
(525
)
 
5,558

Payment of capitalized loan costs
 
(458
)
 
(4,061
)
Cash provided by (used in) financing activities
 
3,917

 
70,288

Effect of exchange rate changes on cash and cash equivalents
 
429

 
6,669

Increase (decrease) in cash, cash equivalents and restricted cash
 
37,313

 
1,937

Cash, cash equivalents and restricted cash, beginning of period
 
361,578

 
589,531

Cash, cash equivalents and restricted cash, end of period
 
$
398,891

 
$
591,468


7



PILGRIM’S PRIDE CORPORATION
Selected Financial Information
(Unaudited)

“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
 
 
 
 
(Unaudited)
Thirteen Weeks Ended
 
March 31, 2019
 
April 1, 2018
 
(In thousands)
Net income
$
84,125

 
$
119,224

Add:
 
 
 
Interest expense, net
30,222

 
48,710

Income tax expense (benefit)
20,416

 
36,997

Depreciation and amortization
67,182

 
67,444

EBITDA
201,945

 
272,375

Add:
 
 
 
Foreign currency transaction losses (gains)
2,636

 
(1,721
)
Acquisition charges

 
179

Restructuring activity
(27
)
 
789

Minus:
 
 
 
   Net income (loss) attributable to noncontrolling interest
114

 
(194
)
Adjusted EBITDA
$
204,440

 
$
271,816



8



The summary unaudited consolidated income statement data for the twelve months ended March 31, 2019 (the LTM Period) have been calculated by subtracting the applicable unaudited consolidated income statement data for the three months ended April 1, 2018 from the sum of (1) the applicable audited consolidated income statement data for the year ended December 30, 2018 and (2) the applicable audited consolidated income statement data for the three months ended March 31, 2019.

PILGRIM'S PRIDE CORPORATION
Reconciliation of LTM Adjusted EBITDA
 
 
 
 
 
 
 
 
 
 
 
(Unaudited)
 
Thirteen Weeks Ended
 
Thirteen Weeks Ended
 
Thirteen Weeks Ended
 
Thirteen Weeks Ended
 
LTM Ended
 
 
July 1,
2018
 
September 30,
2018
 
December 30,
2018
 
March 31,
2019
 
March 31,
2019
 
 
(In thousands)
Net income (loss)
 
$
106,344

 
$
29,463

 
$
(8,227
)
 
$
84,125

 
$
211,705

Add:
 
 
 
 
 
 
 
 
 
 
Interest expense, net
 
35,433

 
31,093

 
33,765

 
30,222

 
130,513

Income tax expense
 
38,522

 
30,848

 
(20,944
)
 
20,416

 
68,842

Depreciation and amortization
 
70,278

 
71,971

 
68,207

 
67,182

 
277,638

Minus:
 
 
 
 
 
 
 
 
 
 
Amortization of capitalized financing
   costs
 
2,453

 
944

 
1,232

 

 
4,629

EBITDA
 
248,124

 
162,431

 
71,569

 
201,945

 
684,069

Add:
 
 
 
 
 
 
 
 
 
 
Foreign currency transaction losses
   (gains)
 
5,630

 
(6,711
)
 
19,962

 
2,636

 
21,517

Acquisition charges
 
125

 
16

 

 

 
141

Restructuring activity
 
1,135

 
257

 
2,584

 
(27
)
 
3,949

Other nonrecurring losses and expenses
 
3,298

 
164

 
16,023

 

 
19,485

Minus:
 
 
 
 
 
 
 
 
 
 
   Net income (loss) attributable to
      noncontrolling interest
 
(197
)
 
153

 
(903
)
 
114

 
(833
)
Adjusted EBITDA
 
$
258,509

 
$
156,004

 
$
111,041

 
$
204,440

 
$
729,994



9



EBITDA margins have been calculated by taking the relevant unaudited EBITDA figures, then dividing by Net Revenue for the applicable period.

PILGRIM'S PRIDE CORPORATION
Reconciliation of EBITDA Margin
 
 
 
 
 
 
 
 
 
(Unaudited)
 
Thirteen Weeks Ended
 
Thirteen Weeks Ended
 
 
March 31, 2019
 
April 1, 2018
 
March 31, 2019
 
April 1, 2018
 
 
(In thousands)
Net income from continuing operations
 
$
84,125

 
$
119,224

 
3.09
%
 
4.34
 %
Add:
 
 
 
 
 
 
 
 
Interest expense, net
 
30,222

 
48,710

 
1.11
%
 
1.77
 %
Income tax expense
 
20,416

 
36,997

 
0.75
%
 
1.35
 %
Depreciation and amortization
 
67,182

 
67,444

 
2.46
%
 
2.46
 %
EBITDA
 
201,945

 
272,375

 
7.41
%
 
9.92
 %
Add:
 
 
 
 
 
 
 
 
Foreign currency transaction losses (gains)
 
2,636

 
(1,721
)
 
0.09
%
 
(0.06
)%
Acquisition charges
 

 
179

 
%
 
 %
Restructuring activity
 
(27
)
 
789

 
%
 
0.03
 %
Minus:
 
 
 
 
 
 
 
 
   Net income (loss) attributable to noncontrolling interest
 
114

 
(194
)
 
%
 
(0.01
)%
Adjusted EBITDA
 
$
204,440

 
$
271,816

 
7.50
%
 
9.90
 %
 
 
 
 
 
 
 
 
 
Net sales
 
$
2,724,675

 
$
2,746,678

 
 
 
 


10



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:
PILGRIM'S PRIDE CORPORATION
Reconciliation of Adjusted Earnings
 
 
 
 
 
(Unaudited)
 
Thirteen Weeks Ended
 
 
March 31,
2019
 
April 1,
2018
 
 
(In thousands, except per share data)
Net income attributable to Pilgrim's Pride Corporation
 
$
84,011

 
$
119,418

Adjustments, net of tax:
 
 
 
 
Loss on early extinguishment of debt
 

 
12,895

Acquisition charges and restructuring activity

(27
)
 
968

Foreign currency transaction losses (gains)
 
2,636

 
(1,721
)
Income before loss on early extinguishment of debt, acquisition
charges and restructuring activity, and foreign currency
transaction losses (gains)
 
86,620

 
131,560

Weighted average diluted shares of common stock outstanding
 
249,557

 
248,989

Income before loss on early extinguishment of debt, acquisition
charges and restructuring activity, and foreign currency
transaction losses (gains) per common diluted share
 
$
0.35

 
$
0.53



11



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

PILGRIM'S PRIDE CORPORATION
Reconciliation of GAAP EPS to Adjusted EPS
 
 
 
 
(Unaudited)
Thirteen Weeks Ended
 
March 31, 2019
 
April 1, 2018
 
(In thousands, except per share data)
GAAP EPS
$
0.34

 
$
0.48

Adjustments, net of tax:
 
 
 
Loss on early extinguishment of debt

 
0.05

Foreign currency transaction losses (gains)
0.01

 
(0.01
)
Adjusted EPS
$
0.35

 
$
0.53

 
 
 
 
Weighted average diluted shares of common stock outstanding
249,557

 
248,989



12



PILGRIM'S PRIDE CORPORATION
Supplementary Selected Segment and Geographic Data
 
 
 
 
 
(Unaudited)
 
Thirteen Weeks Ended
 
 
March 31, 2019
 
April 1, 2018
 
 
(In thousands)
Sources of net sales by country of origin:
 
 
 
 
US
 
$
1,883,591

 
$
1,841,105

Europe
 
514,962

 
544,300

Mexico
 
326,122

 
361,273

Total net sales
 
$
2,724,675

 
$
2,746,678

 
 
 
 
 
Sources of cost of sales by country of origin:
 
 
 
 
US
 
$
1,713,419

 
$
1,658,734

Europe
 
485,378

 
501,568

Mexico
 
306,963

 
298,735

Elimination
 
(24
)
 
(24
)
Total cost of sales
 
$
2,505,736

 
$
2,459,013

 
 
 
 
 
Sources of gross profit by country of origin:
 
 
 
 
US
 
$
170,172

 
$
182,370

Europe
 
29,584

 
42,733

Mexico
 
19,159

 
62,538

Elimination
 
24

 
24

Total gross profit
 
$
218,939

 
$
287,665

 
 
 
 
 
Sources of operating income by country of origin:
 
 
 
 
US
 
$
114,840

 
$
127,286

Europe
 
12,714

 
21,413

Mexico
 
9,464

 
52,870

Elimination
 
24

 
24

Total operating income
 
$
137,042

 
$
201,593




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