Pilgrim’s Pride Reports Second Quarter 2021 Results with Strong Growth in Sales and Adjusted EBITDA Margins
Second Quarter Highlights
Net Sales of$3.64 billion , up 29% from prior year.- Consolidated GAAP Operating Income margin of (3.4)% with GAAP Operating Income margins of (10.0)% in
U.S. , 17.5% inMexico and 2.3% inEurope . AdjustedU.S. Operating Income margin of 7.8%. - GAAP Net Loss of
$(166.7) million . Adjusted Net Income of$153.8 million or adjusted EPS of$0.63 . - Adjusted EBITDA of
$371.6 million , or a 10.2% margin, 231.2% higher than a year ago. - Demand in the
U.S. continues to recover, with our foodservice business improving year-over-year and sequentially, achieving levels higher than pre-pandemic, while Retail volumes remain strong. Our business has improved its margins, especially on the Commodity large bird deboning operation, despite higher input costs and less than optimal mix due to significant labor shortages. Mexico maintained its strong momentum during the second quarter. Solid execution, improved overall economic conditions, supply/demand balance, and our increased share of non-commodity products contributed to the continued strength.- Our combined European business continues to achieve operational improvements and benefited in the quarter with year-over-year and sequential improvements in foodservice volumes in the
UK , offset by continued increases in feed costs, which are not yet fully reflected in prices, and lower pig pricing in the region. - We continue to expand our ESG agenda by releasing our Pilgrim's 2020 Sustainability Report - “Eat Proudly.” The report details our global progress in key priority areas such as animal care, team members, environment, communities, customers and consumers, and suppliers.
- Recorded an aggregate legal contingency accrual of
$396 million . - Our liquidity position remains strong with an Adjusted EBITDA net leverage ratio at 1.6x.
- Continued with our growth strategy the announcement of our intended acquisition of the
Kerry Consumer Foods' Meats and Meals business in theU.K. andIreland . Following the acquisition, Pilgrim's will be a leading food company with a significant value-added protein and integrated prepared foods business anchored by a portfolio of strong brands.
(Unaudited) | Three Months Ended | Six Months Ended | ||||||||||||||||||||
2021 |
2020 |
Y/Y Change | 2021 |
2020 |
Y/Y Change | |||||||||||||||||
(In millions, except per share and percentages) | ||||||||||||||||||||||
Net sales | $ | 3,637.7 | $ | 2,824.0 | +28.8 | % | $ | 6,911.1 | $ | 5,899.0 | +17.2 | % | ||||||||||
$ | (0.68 | ) | $ | (0.02 | ) | +3300.0 | % | $ | (0.27 | ) | $ | 0.25 | (208.0 | )% | ||||||||
Operating income | $ | (123.1 | ) | $ | 27.3 | (550.9 | )% | $ | 35.3 | $ | 111.7 | (68.4 | )% | |||||||||
Adjusted EBITDA(1) | $ | 371.6 | $ | 112.2 | +231.2 | % | $ | 625.5 | $ | 277.7 | +125.2 | % | ||||||||||
Adjusted EBITDA margin(1) | 10.2 | % | 4.0 | % | +6.2 | pts | 9.1 | % | 4.7 | % | +4.4 | pts | ||||||||||
(1) Reconciliations for non-
“As the world emerges from the COVID-19 pandemic, more of the population gets vaccinated and activities gradually return to normal, we are optimistic that dining out, gathering with friends and family for meals and eating lunch at work or at school will once again become routine,” stated
“Our
“Meanwhile, our
“In Q2, although challenged by increasing grain costs,
Conference Call Information
A conference call to discuss Pilgrim’s quarterly results will be held tomorrow,
To pre-register, go to: https://services.choruscall.com/links/ppc210729.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
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
About Pilgrim’s Pride
Pilgrim’s employs approximately 54,700 people and operates protein processing plants and prepared-foods facilities in 14 states,
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
Contact: | Investor Relations IRPPC@pilgrims.com www.pilgrims.com |
|
PILGRIM’S PRIDE CORPORATION | ||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
(Unaudited) | ||||||||
(In thousands) | ||||||||
Cash and cash equivalents | $ | 391,805 | $ | 547,624 | ||||
Restricted cash and cash equivalents | 98,212 | 782 | ||||||
Trade accounts and other receivables, less allowance for doubtful accounts | 866,476 | 741,992 | ||||||
Accounts receivable from related parties | 868 | 1,084 | ||||||
Inventories | 1,530,014 | 1,358,793 | ||||||
Income taxes receivable | 51,351 | 69,397 | ||||||
Prepaid expenses and other current assets | 190,574 | 183,039 | ||||||
Total current assets | 3,129,300 | 2,902,711 | ||||||
Deferred tax assets | 5,494 | 5,471 | ||||||
Other long-lived assets | 26,837 | 24,780 | ||||||
Operating lease assets, net | 295,391 | 288,886 | ||||||
Identified intangible assets, net | 589,536 | 589,913 | ||||||
1,024,900 | 1,005,245 | |||||||
Property, plant and equipment, net | 2,677,387 | 2,657,491 | ||||||
Total assets | $ | 7,748,845 | $ | 7,474,497 | ||||
Accounts payable | $ | 1,092,164 | $ | 1,028,710 | ||||
Accounts payable to related parties | 8,595 | 9,650 | ||||||
Revenue contract liabilities | 36,275 | 65,918 | ||||||
Accrued expenses and other current liabilities | 1,051,546 | 807,847 | ||||||
Income taxes payable | 30,681 | — | ||||||
Current maturities of long-term debt | 25,453 | 25,455 | ||||||
Total current liabilities | 2,244,714 | 1,937,580 | ||||||
Noncurrent operating lease liability, less current maturities | 221,345 | 217,432 | ||||||
Long-term debt, less current maturities | 2,270,298 | 2,255,546 | ||||||
Deferred tax liabilities | 318,159 | 339,831 | ||||||
Other long-term liabilities | 99,817 | 148,761 | ||||||
Total liabilities | 5,154,333 | 4,899,150 | ||||||
Common stock | 2,614 | 2,612 | ||||||
(345,134 | ) | (345,134 | ) | |||||
Additional paid-in capital | 1,959,558 | 1,954,334 | ||||||
Retained earnings | 906,090 | 972,569 | ||||||
Accumulated other comprehensive income (loss) | 59,354 | (20,620 | ) | |||||
Total Pilgrim’s |
2,582,482 | 2,563,761 | ||||||
Noncontrolling interest | 12,030 | 11,586 | ||||||
Total stockholders’ equity | 2,594,512 | 2,575,347 | ||||||
Total liabilities and stockholders’ equity | $ | 7,748,845 | $ | 7,474,497 | ||||
PILGRIM’S PRIDE CORPORATION | ||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
(In thousands, except per share data) | ||||||||||||||||
Net sales | $ | 3,637,698 | $ | 2,824,023 | $ | 6,911,123 | $ | 5,898,951 | ||||||||
Cost of sales | 3,257,457 | 2,704,164 | 6,269,639 | 5,601,993 | ||||||||||||
Gross profit | 380,241 | 119,859 | 641,484 | 296,958 | ||||||||||||
Selling, general and administrative expense | 503,372 | 92,570 | 606,151 | 185,283 | ||||||||||||
Operating income | (123,131 | ) | 27,289 | 35,333 | 111,675 | |||||||||||
Interest expense, net of capitalized interest | 50,651 | 32,323 | 80,985 | 65,011 | ||||||||||||
Interest income | (842 | ) | (1,158 | ) | (3,208 | ) | (2,848 | ) | ||||||||
Foreign currency transaction loss (gain) | 4,145 | 5,525 | 6,659 | (12,860 | ) | |||||||||||
Miscellaneous, net | (770 | ) | (45 | ) | (8,614 | ) | (34,233 | ) | ||||||||
Income before income taxes | (176,315 | ) | (9,356 | ) | (40,489 | ) | 96,605 | |||||||||
Income tax expense | (9,812 | ) | (2,956 | ) | 25,546 | 35,556 | ||||||||||
Net income | (166,503 | ) | (6,400 | ) | (66,035 | ) | 61,049 | |||||||||
Less: Net income attributable to noncontrolling interests | 184 | (364 | ) | 444 | (183 | ) | ||||||||||
Net income attributable to Pilgrim’s |
$ | (166,687 | ) | $ | (6,036 | ) | $ | (66,479 | ) | $ | 61,232 | |||||
Weighted average shares of |
||||||||||||||||
Basic | 243,675 | 246,687 | 243,627 | 248,017 | ||||||||||||
Effect of dilutive common stock equivalents | — | — | — | 291 | ||||||||||||
Diluted | 243,675 | 246,687 | 243,627 | 248,308 | ||||||||||||
Net income attributable to |
||||||||||||||||
Basic | $ | (0.68 | ) | $ | (0.02 | ) | $ | (0.27 | ) | $ | 0.25 | |||||
Diluted | $ | (0.68 | ) | $ | (0.02 | ) | $ | (0.27 | ) | $ | 0.25 | |||||
PILGRIM’S PRIDE CORPORATION AND SUBSIDIARIES | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(Unaudited) | ||||||||
Six Months Ended | ||||||||
(In thousands) | ||||||||
Cash flows from operating activities: | ||||||||
Net income | $ | (66,035 | ) | $ | 61,049 | |||
Adjustments to reconcile net income to cash provided by operating activities: | ||||||||
Depreciation and amortization | 182,260 | 164,376 | ||||||
Loss on early extinguishment of debt recognized as a component of interest expense | 24,254 | — | ||||||
Deferred income tax expense | (32,809 | ) | 25,255 | |||||
Stock-based compensation | 5,168 | 3,467 | ||||||
Gain on property disposals | (5,057 | ) | (1,587 | ) | ||||
Loan cost amortization | 2,279 | 2,422 | ||||||
Accretion of discount related to Senior Notes | 675 | 491 | ||||||
Amortization of premium related to Senior Notes | (167 | ) | (334 | ) | ||||
Loss (gain) on equity-method investments | (8 | ) | 304 | |||||
Negative adjustment to previously recognized gain on bargain purchase | — | 1,740 | ||||||
Changes in operating assets and liabilities: | ||||||||
Trade accounts and other receivables | (117,610 | ) | 29,920 | |||||
Inventories | (173,947 | ) | 16,350 | |||||
Prepaid expenses and other current assets | (6,027 | ) | (22,072 | ) | ||||
Accounts payable, accrued expenses and other current liabilities | 266,487 | (122,191 | ) | |||||
Income taxes | 46,638 | (27,350 | ) | |||||
Long-term pension and other postretirement obligations | (9,507 | ) | (1,908 | ) | ||||
Other operating assets and liabilities | (1,642 | ) | 10,794 | |||||
Cash provided by operating activities | 114,952 | 140,726 | ||||||
Cash flows from investing activities: | ||||||||
Acquisitions of property, plant and equipment | (183,744 | ) | (148,175 | ) | ||||
Proceeds from property disposals | 21,385 | 9,894 | ||||||
Purchase of acquired business, net of cash acquired | — | (4,216 | ) | |||||
Cash used in investing activities | (162,359 | ) | (142,497 | ) | ||||
Cash flows from financing activities: | ||||||||
Proceeds from revolving line of credit and long-term borrowings | 1,540,133 | 356,547 | ||||||
Payments on revolving line of credit, long-term borrowings and finance lease obligations | (1,522,416 | ) | (20,105 | ) | ||||
Payment on early extinguishment of debt | (21,258 | ) | — | |||||
Payment of capitalized loan costs | (8,650 | ) | — | |||||
Payment of equity distribution under Tax Sharing Agreement between |
(650 | ) | — | |||||
Purchase of common stock under share repurchase program | — | (77,879 | ) | |||||
Cash provided by financing activities | (12,841 | ) | 258,563 | |||||
Effect of exchange rate changes on cash and cash equivalents | 1,859 | (2,896 | ) | |||||
Increase in cash, cash equivalents and restricted cash | (58,389 | ) | 253,896 | |||||
Cash, cash equivalents and restricted cash, beginning of period | 548,406 | 280,577 | ||||||
Cash, cash equivalents and restricted cash, end of period | $ | 490,017 | $ | 534,473 | ||||
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 loss (gain), (2) transaction costs from business acquisitions, (3) DOJ agreement & litigation settlements, (4) negative adjustment to previously recognized gain on bargain purchase, (5) shareholder litigation settlement, (6) deconsolidation of a subsidiary and (7) net income attributable to noncontrolling interest. 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
Reconciliation of Adjusted EBITDA | |||||||||||||||
(Unaudited) | |||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||
(In thousands) | |||||||||||||||
Net income | $ | (166,503 | ) | $ | (6,400 | ) | $ | (66,035 | ) | $ | 61,049 | ||||
Add: | |||||||||||||||
Interest expense, net(a) | 49,809 | 31,165 | 77,777 | 62,163 | |||||||||||
Income tax expense | (9,812 | ) | (2,956 | ) | 25,546 | 35,556 | |||||||||
Depreciation and amortization | 95,728 | 84,603 | 182,260 | 164,376 | |||||||||||
EBITDA | (30,778 | ) | 106,412 | 219,548 | 323,144 | ||||||||||
Add: | |||||||||||||||
Foreign currency transaction loss (gain)(b) | 4,145 | 5,525 | 6,659 | (12,860 | ) | ||||||||||
Transaction costs related to acquisitions(c) | 2,545 | (81 | ) | 2,545 | 134 | ||||||||||
DOJ agreement & litigation settlements(d) | 395,886 | — | 398,285 | — | |||||||||||
Minus: | |||||||||||||||
Negative adjustment to previously recognized gain on bargain purchase(e) | — | — | — | (1,740 | ) | ||||||||||
Shareholder litigation settlement(f) | — | — | — | 34,643 | |||||||||||
Deconsolidation of subsidiary(g) | — | — | 1,131 | — | |||||||||||
Net income attributable to noncontrolling interest | 184 | (364 | ) | 444 | (183 | ) | |||||||||
Adjusted EBITDA | $ | 371,614 | $ | 112,220 | $ | 625,462 | $ | 277,698 | |||||||
(a) Interest expense, net, consists of interest expense less interest income.
(b) The Company measures the financial statements of its
(c) Transaction costs related to acquisitions includes those charges that are incurred in conjunction with business acquisitions.
(d) On
(e) The gain on bargain purchase was recognized as a result of the PPL acquisition in
(f) Shareholder litigation settlement is income received as a result of a settlement in the first quarter of 2020.
(g) This represents a gain recognized as a result of deconsolidation of a subsidiary.
The summary unaudited consolidated income statement data for the twelve months ended
Reconciliation of LTM Adjusted EBITDA | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Three Months Ended | LTM Ended | |||||||||||||||||||
2020 |
2020 |
2021 |
2021 |
2021 |
||||||||||||||||
(In thousands) | ||||||||||||||||||||
Net income | $ | 33,691 | $ | 330 | $ | 100,468 | $ | (166,503 | ) | $ | (32,014 | ) | ||||||||
Add: | ||||||||||||||||||||
Interest expense, net | 28,801 | 27,849 | 27,968 | 49,809 | 134,427 | |||||||||||||||
Income tax expense | 22,344 | 8,855 | 35,358 | (9,812 | ) | 56,745 | ||||||||||||||
Depreciation and amortization | 84,265 | 88,463 | 86,532 | 95,728 | 354,988 | |||||||||||||||
EBITDA | 169,101 | 125,497 | 250,326 | (30,778 | ) | 514,146 | ||||||||||||||
Add: | ||||||||||||||||||||
Foreign currency transaction losses | 9,092 | 4,528 | 2,514 | 4,145 | 20,279 | |||||||||||||||
Transaction costs related to acquisitions | — | — | — | 2,545 | 2,545 | |||||||||||||||
DOJ agreement & litigation settlements | 110,524 | 75,000 | 2,399 | 395,886 | 583,809 | |||||||||||||||
Restructuring charges | — | 123 | — | — | 123 | |||||||||||||||
Hometown Strong commitment | 14,506 | 494 | — | — | 15,000 | |||||||||||||||
Minus: | ||||||||||||||||||||
Negative adjustment to previously recognized gain on bargain purchase | (2,006 | ) | — | — | — | (2,006 | ) | |||||||||||||
Deconsolidation of subsidiary | — | — | 1,131 | — | 1,131 | |||||||||||||||
Net income (loss) attributable to noncontrolling interest | 245 | 251 | 260 | 184 | 940 | |||||||||||||||
Adjusted EBITDA | $ | 304,984 | $ | 205,391 | $ | 253,848 | $ | 371,614 | $ | 1,135,837 | ||||||||||
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
Reconciliation of EBITDA Margin | ||||||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
Net income | $ | (166,503 | ) | $ | (6,400 | ) | $ | (66,035 | ) | $ | 61,049 | (4.58 | )% | (0.23 | )% | (0.96 | )% | 1.03 | % | |||||||||||||
Add: | ||||||||||||||||||||||||||||||||
Interest expense, net | 49,809 | 31,165 | 77,777 | 62,163 | 1.37 | % | 1.10 | % | 1.13 | % | 1.05 | % | ||||||||||||||||||||
Income tax expense | (9,812 | ) | (2,956 | ) | 25,546 | 35,556 | (0.27 | )% | (0.10 | )% | 0.37 | % | 0.60 | % | ||||||||||||||||||
Depreciation and amortization | 95,728 | 84,603 | 182,260 | 164,376 | 2.63 | % | 2.99 | % | 2.63 | % | 2.78 | % | ||||||||||||||||||||
EBITDA | (30,778 | ) | 106,412 | 219,548 | 323,144 | (0.85 | )% | 3.76 | % | 3.17 | % | 5.46 | % | |||||||||||||||||||
Add: | ||||||||||||||||||||||||||||||||
Foreign currency transaction losses (gains) | 4,145 | 5,525 | 6,659 | (12,860 | ) | 0.11 | % | 0.19 | % | 0.09 | % | (0.21 | )% | |||||||||||||||||||
Transaction costs related to business acquisitions | 2,545 | (81 | ) | 2,545 | 134 | 0.07 | % | — | % | 0.04 | % | — | % | |||||||||||||||||||
DOJ agreement & litigation settlements | 395,886 | — | 398,285 | — | 10.88 | % | — | % | 5.76 | % | — | % | ||||||||||||||||||||
Minus: | ||||||||||||||||||||||||||||||||
Negative adjustment to previously recognized gain on bargain purchase | — | — | — | (1,740 | ) | — | % | — | % | — | % | (0.03 | )% | |||||||||||||||||||
Shareholder litigation settlement | — | — | — | 34,643 | — | % | — | % | — | % | 0.59 | % | ||||||||||||||||||||
Deconsolidation of subsidiary | — | — | 1,131 | — | — | % | — | % | 0.02 | % | — | % | ||||||||||||||||||||
Net income attributable to noncontrolling interest | 184 | (364 | ) | 444 | (183 | ) | 0.01 | % | (0.01 | )% | 0.01 | % | — | % | ||||||||||||||||||
Adjusted EBITDA | $ | 371,614 | $ | 112,220 | $ | 625,462 | $ | 277,698 | 10.20 | % | 3.96 | % | 9.03 | % | 4.69 | % | ||||||||||||||||
Net sales | $ | 3,637,698 | $ | 2,824,023 | $ | 6,911,123 | $ | 5,898,951 | $ | 3,637,698 | $ | 2,824,023 | $ | 6,911,123 | $ | 5,898,951 | ||||||||||||||||
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:
Reconciliation of Adjusted Operating Income | |||||||||||||||
(Unaudited) | |||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||
(In thousands) | |||||||||||||||
GAAP operating income ( |
$ | (224,171 | ) | $ | 39,448 | $ | (156,046 | ) | $ | 124,500 | |||||
Transaction costs related to acquisitions | 2,545 | (81 | ) | 2,545 | 134 | ||||||||||
DOJ agreement & litigation settlements | 395,886 | — | 398,285 | — | |||||||||||
Adjusted operating income ( |
$ | 174,260 | $ | 39,367 | $ | 244,784 | $ | 124,634 | |||||||
Adjusted operating income margin ( |
7.8 | % | 2.2 | % | 5.8 | % | 3.3 | % | |||||||
Adjusted Operating Income Margin for the
Reconciliation of GAAP Operating Income Margin to Adjusted Operating Income Margin | |||||||||||
(Unaudited) | |||||||||||
Three Months Ended | Six Months Ended | ||||||||||
(In percent) | |||||||||||
GAAP operating income margin ( |
(10.0 | )% | 2.2 | % | (3.7 | )% | 3.3 | % | |||
Transaction costs related to acquisitions | 0.1 | % | — | % | 0.1 | % | — | % | |||
DOJ agreement & litigation settlements | 17.7 | % | — | % | 9.4 | % | — | % | |||
Adjusted operating income margin ( |
7.8 | % | 2.2 | % | 5.8 | % | 3.3 | % | |||
Adjusted net income attributable to
Reconciliation of Adjusted Net Income | |||||||||||||||
(Unaudited) | |||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||
(In thousands, except per share data) | |||||||||||||||
Net income attributable to Pilgrim's | $ | (166,687 | ) | $ | (6,036 | ) | $ | (66,479 | ) | $ | 61,232 | ||||
Add: | |||||||||||||||
Foreign currency transaction losses (gains) | 4,145 | 5,525 | 6,659 | (12,860 | ) | ||||||||||
Transaction costs related to acquisitions | 2,545 | (81 | ) | 2,545 | 134 | ||||||||||
DOJ agreement & litigation settlements | 395,886 | — | 398,285 | — | |||||||||||
Loss on early extinguishment of debt recognized as a component of interest expense | 24,254 | — | 24,254 | — | |||||||||||
Minus: | |||||||||||||||
Deconsolidation of subsidiary | — | — | 1,131 | — | |||||||||||
Adjusted net income attributable to Pilgrim's before tax impact of adjustments | 260,143 | (592 | ) | 364,133 | 48,506 | ||||||||||
Net tax impact of adjustments(a) | (106,323 | ) | (1,356 | ) | (107,265 | ) | 3,170 | ||||||||
Adjusted net income attributable to Pilgrim's | $ | 153,820 | $ | (1,948 | ) | $ | 256,868 | $ | 51,676 | ||||||
Weighted average diluted shares of common stock outstanding | 243,675 | 246,687 | 243,627 | 248,308 | |||||||||||
Adjusted net income attributable to Pilgrim's per common diluted share | $ | 0.63 | $ | (0.01 | ) | $ | 1.05 | $ | 0.21 | ||||||
(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
Reconciliation of GAAP EPS to Adjusted EPS | |||||||||||||||
(Unaudited) | |||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||
(In thousands, except per share data) | |||||||||||||||
GAAP EPS | $ | (0.68 | ) | $ | (0.02 | ) | $ | (0.27 | ) | $ | 0.25 | ||||
Add: | |||||||||||||||
Foreign currency transaction losses (gains) | 0.02 | 0.02 | 0.03 | (0.05 | ) | ||||||||||
Transaction costs related to acquisitions | 0.01 | — | 0.01 | — | |||||||||||
DOJ agreement & litigation settlements | 1.62 | — | 1.63 | — | |||||||||||
Loss on early extinguishment of debt recognized as a component of interest expense | 0.10 | — | 0.10 | — | |||||||||||
Minus: | |||||||||||||||
Deconsolidation of subsidiary | — | — | — | — | |||||||||||
Adjusted EPS before tax impact of adjustments | 1.07 | — | 1.50 | 0.20 | |||||||||||
Net tax impact of adjustments(a) | (0.44 | ) | (0.01 | ) | (0.45 | ) | 0.01 | ||||||||
Adjusted EPS | $ | 0.63 | $ | (0.01 | ) | $ | 1.05 | $ | 0.21 | ||||||
Weighted average diluted shares of common stock outstanding | 243,675 | 246,687 | 243,627 | 248,308 | |||||||||||
(a) Net tax impact of adjustments represents the tax impact of all adjustments shown above.
Supplementary Selected Segment and Geographic Data | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
(In thousands) | ||||||||||||||||
Sources of net sales by geographic region of origin: | ||||||||||||||||
$ | 2,248,470 | $ | 1,798,689 | $ | 4,248,029 | $ | 3,725,569 | |||||||||
935,845 | 757,201 | 1,790,579 | 1,579,463 | |||||||||||||
453,383 | 268,133 | 872,515 | 593,919 | |||||||||||||
Total net sales | $ | 3,637,698 | $ | 2,824,023 | $ | 6,911,123 | $ | 5,898,951 | ||||||||
Sources of cost of sales by geographic region of origin: | ||||||||||||||||
$ | 2,008,122 | $ | 1,710,668 | $ | 3,874,822 | $ | 3,499,445 | |||||||||
885,800 | 700,553 | 1,702,726 | 1,470,687 | |||||||||||||
363,549 | 293,143 | 692,119 | 632,085 | |||||||||||||
Elimination | (14 | ) | (200 | ) | (28 | ) | (224 | ) | ||||||||
Total cost of sales | $ | 3,257,457 | $ | 2,704,164 | $ | 6,269,639 | $ | 5,601,993 | ||||||||
Sources of gross profit by geographic region of origin: | ||||||||||||||||
$ | 240,348 | $ | 88,021 | $ | 373,207 | $ | 226,124 | |||||||||
50,045 | 56,648 | 87,853 | 108,776 | |||||||||||||
89,834 | (25,010 | ) | 180,396 | (38,166 | ) | |||||||||||
Elimination | 14 | 200 | 28 | 224 | ||||||||||||
Total gross profit | $ | 380,241 | $ | 119,859 | $ | 641,484 | $ | 296,958 | ||||||||
Sources of operating income by geographic region of origin: | ||||||||||||||||
$ | (224,171 | ) | $ | 39,448 | $ | (156,046 | ) | $ | 124,500 | |||||||
21,831 | 23,185 | 32,326 | 46,375 | |||||||||||||
79,195 | (35,544 | ) | 159,025 | (59,424 | ) | |||||||||||
Elimination | 14 | 200 | 28 | 224 | ||||||||||||
Total operating income | $ | (123,131 | ) | $ | 27,289 | $ | 35,333 | $ | 111,675 | |||||||
Source: Pilgrim's Pride Corporation