Pilgrim's Pride Corporation
PILGRIMS PRIDE CORP (Form: 8-K, Received: 02/09/2017 06:03:11)


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): February 8, 2017
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
 
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))






Item 2.02. Results of Operations and Financial Condition.
On February 8, 2017 the Registrant issued a press release, a copy of which is attached hereto as Exhibit 99.1 and is incorporated herein by reference.






Item 9.01 Financial Statements and Exhibits.
Exhibit 99.1    Press release dated February 8, 2017






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:
February 8, 2017
 
/s/ Fabio Sandri
 
 
 
Fabio Sandri
 
 
 
Chief Financial Officer






Exhibit Index
Exhibit 99.1    Press release dated February 8, 2017




PILGRIMSLOGOA05A01A01A01A04.JPG


Pilgrim’s Pride Ends Fiscal Year 2016 with an Operating Income of $714 Million and an Operating Margin of 9.0%

GREELEY, Colo., February 8, 2017 (GLOBE NEWSWIRE) - Pilgrim’s Pride Corporation (NASDAQ: PPC) reports fourth quarter and year-end 2016 financial results.

Fourth Quarter Results
Net Sales of $1.91 billion.
Net Income of $70.6 million, GAAP EPS of $0.28.
Adjusted EBITDA of $172.2 million (or a 9.0% margin).
Cash Flow from Operations of $224.4 million.
2016 Highlights
Invested $270 million in capex during 2016 on our operations, including strategic projects on product mix changes to reduce impact of commodity markets, strengthen operational efficiencies as well as tailored customer needs, and improve margin profile.
Over $200 million shares repurchased and $2.2 billion in special dividends in last two years indicating strong commitment to shareholder value generation and optimal capital structure while preserving growth initiatives.
Small and case-ready birds continue to deliver strong performance, on favorable market conditions, despite greater availability of other proteins.
Acquisition of the GNP Company completed; integration and synergy capture well underway.
Successful launch of premium, Pilgrim’s-branded Value Added Products in Mexico, complementing the existing popular Del Dia range of products, providing improved coverage of all consumer market segments.

Unaudited, In Millions, Except Per Share and Percentages
 
 
Thirteen Weeks Ended
 
Fifty-Two Weeks Ended
 
 
Dec 25, 2016
 
Dec 27, 2015
 
Y/Y Change
 
Dec 25, 2016
 
Dec 27, 2015
 
Y/Y Change
Net Sales
$1,908.2
 
$1,960.8
 
-2.7%
 
$7,931.1
 
$8,180.1
 
-3.0%
GAAP EPS
$0.28
 
$0.25
 
+12.0%
 
$1.73
 
$2.50
 
-30.8%
Operating Income
$124.3
 
$107.8
 
+15.3%
 
$713.5
 
$1,044.9
 
-31.7%
Adjusted EBITDA (1)
$172.2
 
$150.0
 
+14.8%
 
$899.3
 
$1,213.5
 
-25.9%
Adjusted EBITDA Margin (1)
9.0%
 
7.7%
 
+1.3pts
 
11.3%
 
14.8%
 
-3.5pts
(1)
Reconciliations for non-GAAP measures are provided in subsequent sections within this release.

1




“Our Fresh business continued to perform well in Q4 driven by our differentiated portfolio strategy of having a well-balanced mix of multiple bird sizes, geographical coverage, and strong relationships with key customers. Robust traffic at grocery retailers is driving strong demand for our products, a strong indication that chicken demand has remained healthy despite greater availability of other proteins. We remain committed to our prepared foods operations and expect growth in 2017, with new capacity additions at Moorefield to begin contributing to volumes starting in Q1,” stated Bill Lovette, Chief Executive Officer of Pilgrim's.

“We continue to invest in facility improvements and diversify our portfolio by improving mix and offer more differentiated, innovative products to serve key customer requirements, reduce the impact of commodity markets, and further raise our margin profile. Reflecting our commitment to spend cash flows on strong ROI projects, we spent a total of $270 million on capex in 2016, higher than our depreciation and a record for our company; including strategic projects which will strengthen our operational efficiencies and tailored customer needs to improve competitive advantages for us.

“Signifying our commitment to generate shareholder value by optimizing capital structure while pursuing our growth strategy, above all investments in our operations, we paid a total of $2.2 billion in special dividends over the past two years, repurchased over $200 million in shares, successfully integrated our Mexican acquisition and acquired the GNP Company to broaden our geographical footprint and enhance our portfolio of on-trend value-added products.”

Conference Call Information

A conference call to discuss Pilgrim’s quarterly results will be held tomorrow, February 9, 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/ppc170209.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 (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 May 9, 2017.

About Pilgrim’s Pride

Pilgrim’s employs approximately 41,400 people and operates chicken processing plants and prepared-foods facilities in 14 states, Puerto Rico and Mexico. 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

2



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
 
www.pilgrims.com


3




PILGRIM’S PRIDE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
 
 
 
December 25, 2016
 
December 27, 2015
 
 
(Unaudited)
 
 
 
 
(In thousands)
Cash and cash equivalents
 
$
120,328

 
$
439,638

Restricted cash and cash equivalents
 
4,979

 

Trade accounts and other receivables, less allowance for doubtful accounts
 
317,170

 
348,994

Account receivable from related parties
 
3,913

 
2,668

Inventories
 
813,262

 
801,357

Income taxes receivable
 

 
71,410

Prepaid expenses and other current assets
 
57,457

 
75,602

Assets held for sale
 
5,259

 
6,555

Total current assets
 
1,322,368

 
1,746,224

Other long-lived assets
 
15,710

 
15,672

Identified intangible assets, net
 
38,593

 
47,453

Goodwill
 
125,607

 
156,565

Property, plant and equipment, net
 
1,505,940

 
1,352,529

Total assets
 
$
3,008,218

 
$
3,318,443

 
 
 
 
 
Notes payable to banks
 
$

 
$
28,726

Accounts payable
 
555,097

 
482,954

Accounts payable to related parties
 
1,421

 
7,000

Accrued expenses
 
290,699

 
314,966

Income taxes payable
 
20,990

 
13,228

Current maturities of long-term debt
 
94

 
86

Total current liabilities
 
868,301

 
846,960

Long-term debt, less current maturities
 
1,011,858

 
985,509

Deferred tax liabilities
 
142,651

 
131,882

Other long-term liabilities
 
88,661

 
92,282

Total liabilities
 
2,111,471

 
2,056,633

Commitments and contingencies
 
 
 
 
Preferred stock, $.01 par value, 50,000,000 shares authorized; no shares issued
 

 

Common stock, $.01 par value, 800,000,000 shares authorized; 259,682,000 and
259,685,145 shares issued at year-end 2016 and year-end 2015, respectively;
249,046,139 and 254,823,286 shares outstanding at year-end 2016 and year-end
2015, respectively
 
2,597

 
2,597

Treasury stock, at cost, 10,635,861 shares at year-end 2016
 
(217,117
)
 
(99,233
)
Additional paid-in capital
 
1,686,742

 
1,675,674

Retained earnings (accumulated deficit)
 
(520,635
)
 
(261,252
)
Accumulated other comprehensive loss
 
(64,243
)
 
(58,930
)
Total Pilgrim’s Pride Corporation stockholders’ equity
 
887,344

 
1,258,856

Noncontrolling interest
 
9,403

 
2,954

Total stockholders’ equity
 
896,747

 
1,261,810

Total liabilities and stockholders' equity
 
$
3,008,218

 
$
3,318,443



4




PILGRIM’S PRIDE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
 
 
 
Thirteen Weeks Ended
 
Fifty-Two Weeks Ended
 
 
December 25, 2016
 
December 27, 2015
 
December 25, 2016
 
December 27, 2015
 
 
(In thousands, except per share data)
Net sales
 
$
1,908,150

 
$
1,960,780

 
$
7,931,123

 
$
8,180,104

Cost of sales
 
1,727,700

 
1,800,087

 
7,016,763

 
6,925,727

Gross profit
 
180,450

 
160,693

 
914,360

 
1,254,377

Selling, general and administrative expense
 
55,357

 
52,920

 
199,781

 
203,881

Administrative restructuring charges
 
790

 

 
1,069

 
5,605

Operating income
 
124,303

 
107,773

 
713,510

 
1,044,891

Interest expense, net of capitalized interest
 
10,381

 
10,678

 
45,921

 
37,548

Interest income
 
(223
)
 
(587
)
 
(1,724
)
 
(3,673
)
Foreign currency transaction loss (gain)
 
4,734

 
2,134

 
3,897

 
25,940

Miscellaneous, net
 
(1,582
)
 
(547
)
 
(7,219
)
 
(7,682
)
Income before income taxes
 
110,993

 
96,095

 
672,635

 
992,758

Income tax expense
 
40,844

 
33,045

 
232,906

 
346,796

Net income
 
70,149

 
63,050

 
439,729

 
645,962

Less: Net income (loss) attributable to noncontrolling interests
 
(469
)
 
(98
)
 
(803
)
 
48

Net income attributable to Pilgrim’s Pride Corporation
 
$
70,618

 
$
63,148

 
$
440,532

 
$
645,914

 
 
 
 
 
 
 
 
 
Weighted average shares of common stock outstanding:
 
 
 
 
 
 
 
 
Basic
 
250,853

 
255,216

 
253,669

 
258,442

Effect of dilutive common stock equivalents
 
542

 
262

 
457

 
234

Diluted
 
251,395

 
255,478

 
254,126

 
258,676

 
 
 
 
 
 
 
 
 
Net income attributable to Pilgrim's Pride Corporation per share of
common stock outstanding:
 
 
 
 
 
 
 
 
Basic
 
$
0.28

 
$
0.25

 
$
1.74

 
$
2.50

Diluted
 
$
0.28

 
$
0.25

 
$
1.73

 
$
2.50



5



PILGRIM’S PRIDE CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
 
 
 
Fifty-Two Weeks Ended
 
 
December 25, 2016
 
December 27, 2015
 
 
(In thousands)
Cash flows from operating activities:
 
 
 
 
Net income
 
$
439,729

 
$
645,962

Adjustments to reconcile net income to cash provided by operating
activities:
 
 
 
 
Depreciation and amortization
 
180,515

 
158,975

Asset impairment
 
790

 
4,813

Foreign currency transaction losses (gains)
 

 

Accretion of bond discount
 

 

Loss (gain) on property disposals
 
(7,660
)
 
(10,372
)
Gain on investment securities
 
452

 

Share-based compensation
 
6,102

 
2,975

Deferred income tax expense (benefit)
 
(3,424
)
 
29,512

Changes in operating assets and liabilities:
 
 
 
 
Restricted cash and cash equivalents
 
(4,979
)
 

Trade accounts and other receivables
 
35,617

 
61,294

Inventories
 
(11,905
)
 
57,078

Prepaid expenses and other current assets
 
18,146

 
19,840

Accounts payable and accrued expenses
 
38,427

 
61,882

Income taxes
 
74,597

 
(55,428
)
Long-term pension and other postretirement obligations
 
(10,165
)
 
(3,500
)
Other
 
(759
)
 
3,797

Cash provided by operating activities
 
755,483

 
976,828

Cash flows from investing activities:
 
 
 
 
Acquisitions of property, plant and equipment
 
(272,467
)
 
(175,764
)
Business acquisition
 

 
(373,532
)
Proceeds from property disposals
 
10,805

 
14,610

Cash used in investing activities
 
(261,662
)
 
(534,686
)
Cash flows from financing activities:
 
 
 
 
Proceeds from notes payable to banks
 
36,838

 
28,726

Payments on note payable to bank
 
(65,564
)
 

Proceeds from long-term debt
 
579,876

 
1,680,000

Payments on long-term debt
 
(556,658
)
 
(683,780
)
Proceeds from equity contribution under Tax Sharing Agreement between
JBS USA Holding, S.à.r.l. and Pilgrim's Pride Corporation
 
3,690

 

Tax benefit related to share-based compensation
 

 
6,474

Contributions from noncontrolling interests
 
7,252

 

Payment of capitalized loan costs
 
(693
)
 
(12,364
)
Purchase of common stock under share repurchase program
 
(117,884
)
 
(99,233
)
Purchase of common stock from retirement plan participants
 
(73
)
 

Payment of special cash dividends
 
(699,915
)
 
(1,498,470
)
Cash used in financing activities
 
(813,131
)
 
(578,647
)
Effect of exchange rate changes on cash and cash equivalents
 

 

Increase in cash and cash equivalents
 
(319,310
)
 
(136,505
)

6



Cash and cash equivalents, beginning of period
 
439,638

 
576,143

Cash and cash equivalents, end of period
 
$
120,328

 
$
439,638

Supplemental Disclosure Information:
 
 
 
 
Interest paid (net of amount capitalized)
 
$
41,774

 
$
24,210

Income taxes paid
 
152,884

 
360,347


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
 
Fifty-Two Weeks Ended
 
 
December 25, 2016
 
December 27, 2015
 
December 25, 2016
 
December 27, 2015
 
 
(In thousands)
Net income
 
$
70,149

 
$
63,050

 
$
439,729

 
$
645,962

Add:
 
 
 
 
 
 
 
 
Interest expense, net
 
10,158

 
10,091

 
44,197

 
33,875

Income tax expense (benefit)
 
40,844

 
33,045

 
232,906

 
346,796

Depreciation and amortization
 
46,059

 
42,490

 
180,515

 
158,975

Minus:
 
 
 
 
 
 
 
 
Amortization of capitalized financing costs
 
972

 
930

 
3,832

 
3,638

EBITDA
 
166,238

 
147,746

 
893,515

 
1,181,970

Add:
 
 
 
 
 
 
 
 
Foreign currency transaction losses (gains)
 
4,734

 
2,134

 
3,897

 
25,940

Restructuring charges
 
790

 

 
1,069

 
5,605

Minus:
 
 
 
 
 
 
 
 
   Net income (loss) attributable to noncontrolling interest
 
(469
)
 
(98
)
 
(803
)
 
48

Adjusted EBITDA
 
$
172,231

 
$
149,978

 
$
899,284

 
$
1,213,467



8



The summary unaudited consolidated income statement data for the twelve months ended December 25, 2016 (the LTM Period) have been calculated by summing each of the unaudited thirteen week periods within the audited fifty-two week period ended December 25, 2016.

PILGRIM'S PRIDE CORPORATION
Reconciliation of LTM Adjusted EBITDA
 
 
 
 
 
 
 
 
 
 
 
(Unaudited)
 
Thirteen Weeks Ended
 
Thirteen Weeks Ended
 
Thirteen Weeks Ended
 
Thirteen Weeks Ended
 
LTM Ended
 
 
March 27,
2016
 
June 26,
2016
 
September 25,
2016
 
December 25, 2016
 
December 25, 2016
 
(In thousands)
Net income
 
$
118,011

 
$
153,042

 
$
98,527

 
$
70,149

 
$
439,729

Add:
 
 
 
 
 
 
 
 
 
 
Interest expense, net
 
11,340

 
10,865

 
11,834

 
10,158

 
44,197

Income tax expense (benefit)
 
62,604

 
78,398

 
51,060

 
40,844

 
232,906

Depreciation and amortization
 
42,391

 
46,293

 
45,772

 
46,059

 
180,515

Minus:
 
 
 
 
 
 
 
 
 
 
Amortization of capitalized financing costs
 
928

 
962

 
970

 
972

 
3,832

EBITDA
 
233,418

 
287,636

 
206,223

 
166,238

 
893,515

Add:
 
 
 
 
 
 
 
 
 
 
Foreign currency transaction losses (gains)
 
(235
)
 
(4,744
)
 
4,142

 
4,734

 
3,897

Restructuring charges
 

 

 
279

 
790

 
1,069

Minus:
 
 
 
 
 
 
 
 
 
 
   Net income (loss) attributable to noncontrolling interest
 
(360
)
 
156

 
(130
)
 
(469
)
 
(803
)
Adjusted EBITDA
 
$
233,543

 
$
282,736

 
$
210,774

 
$
172,231

 
$
899,284



9



PILGRIM'S PRIDE CORPORATION
Reconciliation of EBITDA Margin
 
(Unaudited)
 
Thirteen Weeks Ended
 
Fifty-Two Weeks Ended
 
Thirteen Weeks Ended
 
Fifty-Two Weeks Ended
 
 
December 25, 2016
 
December 27, 2015
 
December 25, 2016
 
December 27, 2015
 
December 25, 2016
 
December 27, 2015
 
December 25, 2016
 
December 27, 2015
 
(In thousands)
Net income
 
$
70,149

 
$
63,050

 
$
439,729

 
$
645,962

 
3.68
 %
 
3.22
 %
 
5.54
 %
 
7.90
%
Add:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest expense, net
 
10,158

 
10,091

 
44,197

 
33,875

 
0.53
 %
 
0.51
 %
 
0.56
 %
 
0.41
%
Income tax expense (benefit)
 
40,844

 
33,045

 
232,906

 
346,796

 
2.14
 %
 
1.69
 %
 
2.94
 %
 
4.24
%
Depreciation and amortization
 
46,059

 
42,490

 
180,515

 
158,975

 
2.41
 %
 
2.17
 %
 
2.28
 %
 
1.94
%
Minus:
 
 
 
 
 
 
 
 
 
 %
 
 %
 
 %
 
%
Amortization of capitalized financing costs
 
972

 
930

 
3,832

 
3,638

 
0.05
 %
 
0.05
 %
 
0.05
 %
 
0.04
%
EBITDA
 
166,238

 
147,746

 
893,515

 
1,181,970

 
8.71
 %
 
7.54
 %
 
11.27
 %
 
14.45
%
Add:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency transaction losses (gains)
 
4,734

 
2,134

 
3,897

 
25,940

 
0.25
 %
 
0.11
 %
 
0.05
 %
 
0.32
%
Restructuring charges
 
790

 

 
1,069

 
5,605

 
0.04
 %
 
 %
 
0.01
 %
 
0.07
%
Minus:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   Net income (loss) attributable to noncontrolling interest
 
(469
)
 
(98
)
 
(803
)
 
48

 
(0.02
)%
 
 %
 
(0.01
)%
 
%
Adjusted EBITDA
 
$
172,231

 
$
149,978

 
$
899,284

 
$
1,213,467

 
9.03
 %
 
7.65
 %
 
11.34
 %
 
14.83
%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Revenue:
 
$
1,908,150

 
$
1,960,780

 
$
7,931,123

 
$
8,180,104

 
$
1,908,150

 
$
1,960,780

 
$
7,931,123

 
$
8,180,104



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
 
Fifty-Two Weeks Ended
 
December 25,
2016
 
December 27,
2015
 
December 25,
2016
 
December 27,
2015
 
(In thousands, except per share data)
Net income (loss) attributable to Pilgrim's Pride Corporation
$
70,618

 
$
63,148

 
$
440,532

 
$
645,914

Loss on early extinguishment of debt

 

 

 
1,470

Foreign currency transaction losses (gains)
4,734

 
2,134

 
3,897

 
25,940

Income (loss) before loss on early extinguishment of debt and foreign currency transaction losses (gains)
75,352

 
65,282

 
444,429

 
673,324

Weighted average diluted shares of common stock outstanding
251,395

 
255,478

 
254,126

 
258,676

Income (loss) before loss on early extinguishment of debt and foreign currency transaction losses (gains)
per common diluted share
$
0.30

 
$
0.26

 
$
1.75

 
$
2.60



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A reconciliation of GAAP to non-GAAP financial measures. Net income (loss) per share is calculated by dividing the net income (loss) attributable to Pilgrim's Pride Corporation stockholders by the weighted average number of diluted shares.
PILGRIM'S PRIDE CORPORATION
Reconciliation of GAAP EPS to Adjusted EPS
(Unaudited)
 
 
 
 
 
 
 
 
 
Thirteen Weeks Ended
 
Fifty-Two Weeks Ended
 
December 25, 2016
 
December 27, 2015
 
December 25, 2016
 
December 27, 2015
 
(In thousands, except per share data)
GAAP EPS
$
0.28

 
$
0.25

 
$
1.73

 
$
2.50

Loss on early extinguishment of debt

 

 

 
0.01

Foreign currency transaction losses (gains)
0.02

 
0.01

 
0.02

 
0.10

Adjusted EPS
$
0.30

 
$
0.26

 
$
1.75

 
$
2.60

 
 
 
 
 
 
 
 
Weighted average diluted shares of common stock outstanding
251,395

 
255,478

 
254,126

 
258,676



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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:
PILGRIM'S PRIDE CORPORATION
Reconciliation of Net Debt
(Unaudited)
 
 
 
 
 
December 25, 2016
 
December 27, 2015
 
December 28, 2014
 
 
 
 
(In thousands)
Long term debt, less current maturities
$
1,011,858

 
$
985,509

 
$
3,980

Add:  Current maturities of long term debt and notes payable
94

 
28,812

 
262

Minus:  Cash and cash equivalents
120,328

 
439,638

 
576,143

Minus:  Available-for-sale securities

 

 

Net debt (cash position)
$
891,624

 
$
574,683

 
$
(571,901
)


13



PILGRIM'S PRIDE CORPORATION
Supplementary Selected Segment and Geographic Data
 
 
 
 
 
 
 
 
 
 
 
Thirteen Weeks Ended
 
Fifty-Two Weeks Ended
 
 
December 25, 2016
 
December 27, 2015
 
December 25, 2016
 
December 27, 2015
 
 
(Unaudited)
 
 
 
 
 
 
 
 
(In thousands)
Sources of net sales by country of origin:
 
 
 
 
 
 
 
 
US:
 
$
1,599,052

 
$
1,663,362

 
$
6,671,403

 
$
7,143,354

Mexico:
 
309,098

 
297,418

 
1,259,720

 
1,036,750

Total net sales:
 
$
1,908,150

 
$
1,960,780

 
$
7,931,123

 
$
8,180,104

 
 
 
 
 
 
 
 
 
Sources of cost of sales by country of origin:
 
 
 
 
 
 
 
 
US:
 
$
1,458,931

 
$
1,505,335

 
$
5,929,318

 
$
6,016,493

Mexico:
 
268,792

 
294,775

 
1,087,540

 
909,329

Elimination:
 
(23
)
 
(23
)
 
(95
)
 
(95
)
Total cost of sales:
 
$
1,727,700

 
$
1,800,087

 
$
7,016,763

 
$
6,925,727

 
 
 
 
 
 
 
 
 
Sources of gross profit by country of origin:
 
 
 
 
 
 
 
 
US:
 
$
140,121

 
$
158,025

 
$
742,085

 
$
1,126,861

Mexico:
 
40,306

 
2,644

 
172,180

 
127,421

Elimination:
 
23

 
24

 
95

 
95

Total gross profit:
 
$
180,450

 
$
160,693

 
$
914,360

 
$
1,254,377

 
 
 
 
 
 
 
 
 
Sources of operating income by country of origin:
 
 
 
 
 
 
 
 
US:
 
$
92,280

 
$
116,417

 
$
572,558

 
$
949,610

Mexico:
 
32,000

 
(8,668
)
 
140,857

 
95,186

Elimination:
 
23

 
24

 
95

 
95

Total operating income:
 
$
124,303

 
$
107,773

 
$
713,510

 
$
1,044,891




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