SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC  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):  April 15, 2003

 

 

 

PILGRIM’S PRIDE CORPORATION

(Exact Name of Registrant as Specified in its Charter)

 

 

 

 

 

Registrant’s telephone number, including area code:  (903) 855-1000

 

 

Item 12.  Results of Operations and Financial Condition

 

On April 15, 2003, Pilgrim’s Pride Corporation issued a press release announcing its results of operations for the second quarter of fiscal 2003, a copy of which is furnished with this Form 8-K as Exhibit 99.1.  Also furnished herewith as Exhibit 99.2 is certain supplemental historical financial information of Pilgrim’s Pride Corporation, including quarterly information regarding net sales by primary market line.

 

 

Signatures

 

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

	PILGRIM’S PRIDE CORPORATION
Date: April 15, 2003	By:	/s/ Richard A. Cogdill
		Richard A. Cogdill
		Executive Vice President, Chief Financial Officer,
		Secretary and Treasurer

 

 

 

Exhibit Index

 

Exhibit
Number		Description
99.1		Press Release dated April 15, 2003
99.2		Supplemental Historical Financial Information

 

 

Exhibit 99.1

 

PILGRIM’S PRIDE CORPORATION

REPORTS SECOND QUARTER RESULTS FOR FISCAL 2003

 

Pittsburg, TX—April 15, 2003—Pilgrim’s Pride Corporation (NYSE: CHX, CHX.A) today announced a net income of $10.8 million, or $0.26 per share, for the second fiscal quarter ended March 29, 2003, a $9.5 million increase compared to net income in the prior year’s second fiscal quarter of $1.3 million, or $0.03 per share. The Company also announced net sales for the second fiscal quarter ended March 29, 2003 of $630.6 million, a $29.8 million increase compared to the $600.8 million for the same period last year.  The second fiscal quarter results reflect a $0.54 per share gain, net of tax and related employee incentive plan accruals, for partial settlements from vitamin and methionine lawsuits.

 

For the first six months of fiscal 2003, the Company reported net income of $13.5 million, or $0.33 per share, a $0.7 million decrease compared to net income in the prior fiscal year’s first six months of $14.2 million, or $0.35 per share. The Company also announced net sales for the first six months of fiscal 2003 of $1,258.0 million, a $1.2 million increase compared to the $1,256.8 million for the same period last year. The first six months of fiscal 2003 results reflect a $0.56 per share gain, net of tax and related employee incentive plan accruals, for partial settlements from vitamin and methionine lawsuits.  In addition, during the first six months of fiscal 2003 the Company received $16.1 million in non-recurring recoveries related to last year’s avian influenza outbreak in our Eastern Division.  These recoveries were partially offset by the ongoing negative effects of such outbreak on our operations, which the Company estimates at approximately $7.5 million during this period.

 

“This quarter’s improved net income over the same period last year was due primarily to non-recurring recoveries from vitamin and methionine lawsuit settlements,” stated O.B. Goolsby, President and Chief Operating Officer of the Company. “The Company’s results also reflect the continuing negative effects of last quarter’s turkey deli meat recall in our Eastern Division along with rising feed and energy costs and lower prices realized in the U.S. for dark meat chicken products.  We estimate that the recall negatively affected our net sales by approximately $27 million and $54 million and our operating margins between $5-10 million and $10-$20 million during the second fiscal quarter and year-to-date periods, respectively,” further stated Mr. Goolsby.

 

Pilgrim’s Pride Corporation is the second largest poultry producer in the United States; the third largest in chicken and fifth largest in turkey, and second largest chicken company in Mexico.  Pilgrim’s Pride employs more than 24,500 persons and operates processing and further processing plants, distribution centers, hatcheries and feed mills in Texas, Arkansas, Arizona, North Carolina, Pennsylvania, Virginia and West Virginia and Mexico.

 

Products are sold to foodservice, retail and frozen entrée customers. The Company’s primary distribution is through retailers and restaurants throughout the United States and in the Northern and Central regions of Mexico and to the foodservice industry nation-wide in both countries.

 

A conference call to discuss the Company’s second quarter of fiscal 2003 financial results will be held at 10:00 a.m. CDT (11:00 a.m. EDT) on April 16, 2003. To listen live via telephone, call 800-556-3831 access code 00977. The call will also be webcast live on the Internet at http://www.firstcallevents.com/service/ajwz378915747gf12.html.  The webcast will be available for replay within two hours of the conclusion of the call.  A telephone replay will be available beginning at 2:00 p.m. CDT on April 16 through April 23 at 800-876-6305.

 

Statements contained in this press release that state the intentions, hopes, beliefs, anticipations, expectations or predictions of the future of Pilgrim’s Pride Corporation and its management are forward-looking statements. It is important to note that the actual results could differ materially from those projected in such forward-looking statements. For example, factors that could cause actual results to differ materially from those projected in such forward-looking statements include: matters affecting the poultry industry generally, including fluctuations in the commodity prices of feed ingredients, chicken and turkey; disease outbreaks affecting the production performance and/or marketability of the Company’s poultry products; contamination of our products, which has recently 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 our cash resources, particularly in light of our substantial leverage; restrictions imposed by, and as a result of, our substantial leverage; currency exchange rate fluctuations, trade barriers, exchange controls, expropriation and other risks associated with foreign operations; changes in laws or regulations affecting our operations, as well as competitive factors and pricing pressures; inability to effectively integrate WLR Foods or realize the associated cost savings and operating synergies currently anticipated; and the impact of uncertainties  of  litigation as well as other risks described under “Risk Factors” in our Annual Report on Form 10-K and subsequent filings with the Securities and Exchange Commission.

###

For further information:

Richard A. Cogdill

Chief Financial Officer

903/855-4205

 

 

 

 

PILGRIM’S PRIDE CORPORATION

Consolidated Statements of Income

[In thousands, except share and per share amounts]

 

Three Months Ended		March 29, 2003			March 30, 2002
Net Sales		$	630,592		$	600,753
Costs and Expenses:
Cost of sales		604,919			572,122
Non-recurring recoveries		[11,313]			—
Selling, general and administrative		35,576			33,003
		629,183			605,125
Operating Income [Loss]		1,410			[4,372]
Other Expense [Income]:
Interest expense, net		9,942			7,262
Foreign exchange gain [loss]		218			[360]
Miscellaneous, net		[26,896]			873
		[16,737]			7,775
Income [Loss] Before Income Taxes		18,146			[12,147]
Income Tax Expense [Benefit]		7,381			[13,399]
Net Income		$	10,765		$	1,252
Net Income per Common Share
- Basic and Diluted		$	0.26		$	0.03
Dividends Declared per Common Share		$	0.015		$	0.015
Weighted Average Shares Outstanding		41,112,679			41,112,679

 

                                                                                                                                                         
60;                         

 

Six Months Ended		March 29, 2003			March 30, 2002
Net Sales		$	1,257,997		$	1,256,783
Costs and Expenses:
Cost of sales		1,204,325			1,172,482
Non-recurring recoveries		[25,700]			[2,195]
Selling, general and administrative		67,621			67,538
		1,246,246			1,237,825
Operating Income		11,751			18,958
Other Expense [Income]:
Interest expense, net		19,418			15,835
Foreign exchange gain		[132]			[895]
Miscellaneous, net		[28,662]			486
		[9,376]			15,426
Income Before Income Taxes		21,127			3,532
Income Tax Expense [Benefit]		7,606			[10,711]
Net Income		$	13,521		$	14,243
Net Income per Common Share
- Basic and Diluted		$	0.33		$	0.35
Dividends Declared per Common Share		$	0.030		$	0.030
Weighted Average Shares Outstanding		41,112,679			41,112,679

 

 

2

 

PILGRIM’S PRIDE CORPORATION

Condensed Consolidated Balance Sheets

[In thousands]

 

		March 29, 2003			September 28, 2002
ASSETS
Total Current Assets		$	487,798		$	443,918
Other Assets		24,219			21,940
Property, Plant and Equipment, net		747,094			762,032
		$	1,259,111		$	1,227,890
LIABILITIES AND STOCKHOLDERS’ EQUITY
Total Current Liabilities		$	236,906		$	264,881
Long-Term Debt, Less Current Maturities		491,825			450,161
Deferred Income Taxes		123,742			116,911
Minority Interest in Subsidiary		1,309			1,613
Total Stockholders’ Equity		405,329			394,324
		$	1,259,111		$	1,227,890

 

                                                                                                                                                        
60;                          

 

PILGRIM’S PRIDE CORPORATION

Condensed Consolidated Statements of Cash Flows

[In thousands]

 

		March 29, 2003			March 30, 2002
Six Months Ended
Cash [Used in] Provided by Operating Activities (a)		$	[16,000]		$	23,062
Investing Activities:
Acquisitions of property, plant and equipment		[25,024]			[32,231]
Proceeds from property disposals		292			199
Other, net		[589]			[645]
Cash Used in Investing Activities		[25,321]			[32,677]
Financing Activities:
Net borrowings on notes payable		—			55,000
Net proceeds [payments] on long-term debt		42,452			[56,586]
Cash dividends paid		[1,237]			[1,238]
Cash Generated [Used] in Financing Activities		41,215			[2,824]
Effect of exchange rate changes on cash and cash equivalents		[410]			172
Decrease in cash and cash equivalents		$	[516]		$	[12,267]

 

3

Exhibit 99.2

Pilgrim’s Pride Corporation

Net Sales by Primary Market Line

for Quarters Ended:

 

The following table sets forth, for the quarterly periods including and since fiscal 2000, net sales attributable to each of our primary product lines and markets served with those products.   We based the table on our internal sales reports and their classification of product types and customers. The information in these tables should be read in conjunction with the information in our SEC filings, including the discussion of our primary product lines and markets served with those products included in our most recent Annual Report on Form 10-K.

 

		Fiscal Quarters ended
		March 29,		December 28,		September 28,		June 29,		Mar 30		Dec 29		Sept 29,		June 30,		Mar 31,		Dec 30,		Sept 30,		July 1,		April 1,		Jan 1,
		2003		2002		2002		2002		2002		2001		2001		2001		2001 (a)		2000		2000		2000		2000		2000
		(in thousands)
Chicken Sales:
United States
Prepared Foods:
Foodservice		$184,802		$170,048		$170,700		$171,568		$161,171		$156,417		$166,891		$156,859		$160,349		$147,975		$145,294		$165,577		$139,859		$138,665
Retail		$41,202		$35,425		$41,357		$44,438		$37,691		$34,813		$32,204		$30,350		$26,029		$14,618		$16,661		$8,874		$10,698		$11,422
Total Prepared Foods		$226,004		$205,473		$212,057		$216,006		$198,862		$191,230		$199,095		$187,209		$186,378		$162,593		$161,955		$174,451		$150,557		$150,087
Fresh Chicken:
Foodservice		$107,250		$101,749		$109,058		$115,080		$107,795		$116,444		$121,700		$165,413		$62,047		$38,464		$46,205		$54,691		$51,951		$49,345
Retail		$65,405		$59,668		$68,505		$68,619		$63,113		$58,187		$65,925		$43,974		$78,608		$36,187		$37,673		$39,758		$37,021		$34,525
Total Fresh Chicken		$172,655		$161,417		$177,563		$183,699		$170,907		$174,632		$187,625		$209,386		$140,655		$74,651		$83,878		$94,449		$88,972		$83,870
Export and Other
Prepared Foods		$6,494		$5,213		$7,905		$7,839		$7,360		$7,423		$6,290		$6,450		$4,793		$1,379		$1,466		$1,378		$1,050		$701
Chicken-Other		$17,341		$17,931		$19,861		$19,782		$21,479		$32,453		$34,179		$19,939		$24,514		$27,203		$16,250		$12,695		$13,108		$15,519
Total Export and Other		$23,835		$23,145		$27,767		$27,621		$28,839		$39,877		$40,469		$26,389		$29,307		$28,582		$17,716		$14,073		$14,158		$16,221
Total U.S. Chicken		$422,493		$390,035		$417,387		$427,325		$398,609		$405,738		$427,189		$422,984		$356,340		$265,826		$263,549		$282,973		$253,687		$250,178
Mexico:(b)		$85,403		$88,091		$81,260		$80,308		$75,674		$86,528		$76,055		$84,078		$70,447		$72,853		$73,176		$75,686		$71,804		$64,939
Total Chicken Sales		$507,896		$478,126		$498,647		$507,632		$474,282		$492,266		$503,244		$507,063		$426,787		$338,679		$336,725		$358,659		$325,491		$315,117
Total Prepared Foods		232,498		210,686		219,963		223,845		206,222		$198,653		$205,385		$193,659		$191,172		$163,972		$163,421		$175,829		$151,607		$150,788
Turkey Sales:
Prepared Foods:
Foodservice		$24,100		$24,198		$29,729		$29,732		$34,082		$41,109		$30,915		$38,535		$18,561		—		—		—		—		—
Retail		$6,394		$5,013		$14,284		$14,723		$11,803		$13,829		$18,235		$15,970		$14,477		—		—		—		—		—
Total Prepared Foods		$30,495		$29,211		$44,013		$44,454		$45,884		$54,938		$49,150		$54,504		$33,038		—		—		—		—		—
Fresh Turkey:
Foodservice		$13,545		$12,568		$9,797		$5,561		$7,970		$12,792		$6,911		$6,141		$5,567		—		—		—		—		—
Retail		$15,507		$49,401		$25,402		$23,585		$15,498		$43,097		$27,898		$22,947		$20,802		—		—		—		—		—
Total Fresh Turkey		$29,052		$61,969		$35,199		$29,146		$23,468		$55,888		$34,809		$29,088		$26,369		—		—		—		—		—
Export and Other		—		—		—		—		—
Prepared Foods		$486		$785		$711		$473		$564		$1,110		$851		$941		$641		—		—		—		—		—
Turkey-Other		$2,376		$2,414		$2,910		$2,582		$2,310		$4,468		$3,805		$2,846		$2,792		—		—		—		—		—
Total Export and Other		$2,862		$3,199		$3,621		$3,055		$2,874		$5,578		$4,656		$3,788		$3,433		—		—		—		—		—
Total Turkey Sales		$62,408		$94,379		$82,833		$76,656		$72,226		$116,404		$88,615		$87,380		$62,840		—		—		—		—		—
Total Prepared Foods		$30,981		$29,995		$44,724		$44,927		$46,448		$56,048		$50,001		$55,446		$33,679		—		—
Sale of Other Products
U.S.		$52,801		$48,523		$52,846		$48,330		$49,543		$42,972		$45,843		$45,719		$46,569		$41,725		$36,706		$27,940		$42,843		$34,201
Mexico (b)		$7,488		$6,377		$5,494		$4,498		$4,702		$4,388		$3,548		$5,674		$5,397		$5,627		$5,945		$5,380		$4,926		$5,507
Total Other Products		$60,289		$54,900		$58,340		$52,828		$54,245		$47,360		$49,391		$51,393		$51,966		$47,353		$42,650		$33,320		$47,769		$39,708
Total Net Sales		$630,592		$627,405		$639,819		$637,116		$600,753		$656,030		$641,249		$645,836		$541,593		$386,032		$379,375		$391,979		$373,260		$354,825

 

(a)  The acquisition of WLR Foods has been accounted for as a purchase, and the results of operations for this acquisition have been included in our consolidated results of operations since January 27, 2001, the acquisition date.

(b)  Certain item previously classified under Mexico have been reclassified under sale of other products-Mexico.

Amounts reclassified by quarter were:

$ —

$ 123

$ —

$ —

$ —

$ 7

$ 11

$ 10

$ 10

$ 146

$ 132

$ 121

$ 135

$354,825

 

 

1

 

		Fiscal Quarters ended
		March 29,		December 28,		September 28,		June 29,		Mar 30		Dec 29		Sept 29,		June 30,		Mar 31,		Dec 30,		Sept 30,		July 1,		April 1,		Jan 1,
		2003		2002		2002		2002		2002		2001		2001		2001		2001 (a)		2000		2000		2000		2000		2000
		(in thousands)
Chicken Sales:
U.S. Chicken Sales:
Prepared Foods:
Foodservice		43.7	%	43.6	%	40.9	%	40.1	%	40.4	%	38.6	%	39.1	%	37.1	%	45.0	%	55.7	%	55.1	%	58.5	%	55.1	%	55.4	%
Retail		9.8	%	9.1	%	9.9	%	10.4	%	9.5	%	8.6	%	7.5	%	7.2	%	7.3	%	5.5	%	6.3	%	3.1	%	4.2	%	4.6	%
Total Prepared Foods		53.5	%	52.7	%	50.8	%	50.5	%	49.9	%	47.1	%	46.6	%	44.3	%	52.3	%	61.2	%	61.5	%	61.6	%	59.3	%	60.0	%
Fresh Chicken:
Foodservice		25.4	%	26.1	%	26.1	%	26.9	%	27.0	%	28.7	%	28.5	%	39.1	%	17.4	%	14.5	%	17.5	%	19.3	%	20.5	%	19.7	%
Retail		15.5	%	15.3	%	16.4	%	16.1	%	15.8	%	14.3	%	15.4	%	10.4	%	22.1	%	13.6	%	14.3	%	14.1	%	14.6	%	13.8	%
Total Fresh Chicken		40.9	%	41.4	%	42.5	%	43.0	%	42.9	%	43.0	%	43.9	%	49.5	%	39.5	%	28.1	%	31.8	%	33.4	%	35.1	%	33.5	%
Export and Other
Prepared Foods		1.5	%	1.3	%	1.9	%	1.8	%	1.8	%	1.8	%	1.5	%	1.5	%	1.3	%	0.5	%	0.6	%	0.5	%	0.4	%	0.3	%
Chicken-Other		4.1	%	4.6	%	4.8	%	4.6	%	5.4	%	8.0	%	8.0	%	4.7	%	6.9	%	10.2	%	6.2	%	4.5	%	5.2	%	6.2	%
Export and Other		5.6	%	5.9	%	6.7	%	6.5	%	7.2	%	9.8	%	9.5	%	6.2	%	8.2	%	10.8	%	6.7	%	5.0	%	5.6	%	6.5	%
Total U.S. Chicken		100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
Turkey Sales:
U.S. Turkey Sales:
Prepared Foods:
Foodservice		38.6	%	25.6	%	35.9	%	38.8	%	47.2	%	35.3	%	34.9	%	44.1	%	29.5	%	—		—		—		—		—
Retail		10.2	%	5.3	%	17.2	%	19.2	%	16.3	%	11.9	%	20.6	%	18.3	%	23.0	%	—		—		—		—		—
Total Prepared Foods		48.9	%	31.0	%	53.1	%	58.0	%	63.5	%	47.2	%	55.5	%	62.4	%	52.6	%	—		—		—		—		—
Fresh Turkey:
Foodservice		21.7	%	13.3	%	11.8	%	7.3	%	11.0	%	11.0	%	7.8	%	7.0	%	8.9	%	—		—		—		—		—
Retail		24.8	%	52.3	%	30.7	%	30.8	%	21.5	%	37.0	%	31.5	%	26.3	%	33.1	%	—		—		—		—		—
Total Fresh Turkey		46.6	%	65.7	%	42.5	%	38.0	%	32.5	%	48.0	%	39.3	%	33.3	%	42.0	%	—		—		—		—		—
Export and Other
Prepared Foods		0.8	%	0.8	%	0.9	%	0.6	%	0.8	%	1.0	%	1.0	%	1.1	%	1.0	%	—		—		—		—		—
Turkey-Other		3.8	%	2.6	%	3.5	%	3.4	%	3.2	%	3.8	%	4.3	%	3.3	%	4.4	%	—		—		—		—		—
Export and Other		4.6	%	3.4	%	4.4	%	4.0	%	4.0	%	4.8	%	5.3	%	4.3	%	5.5	%	—		—		—		—		—
Total U.S. Turkey		100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	—		—		—		—		—

 

(a)  The acquisition of WLR Foods has been accounted for as a purchase, and the results of operations for this acquisition have been included in our consolidated results of operations since January 27, 2001, the acquisition date.

 

 

2

 

Pilgrim’s Pride Corporation

Selected Financial Data

for fiscal years ended:

 

Our selected financial data is derived from our financial statements. Historical results should not be taken as necessarily indicative of the results that may be expected for any future period. You should read this financial data in conjunction with the appropriate period financial statements and the related notes and “Management’s Discussion and Analysis of Results of Operations and Financial Condition” included in our SEC filings.

 

 

 

		Fiscal Years ended
		2002			2001 (a)			2000			1999 (b)			1998			1997			1996			1995			1994			1993 (b)			1992
		(in thousands except per share data)
Income Statement Data:
Net sales		$	2,533,718		$	2,214,712		$	1,499,439		$	1,357,403		$	1,331,545		$	1,277,649		$	1,139,310		$	931,806		$	922,609		$	887,843		$	817,361
Gross margin		162,214			213,950			165,828			185,708			136,103			114,467			70,640			74,144			110,827			106,036			32,802
Selling, general and administrative expenses		135,261			119,408			85,340			76,204			58,847			50,603			49,136			49,214			50,872			49,934			46,277
Non-recurring recoveries		(2,951		)	—			—			—			—			—			—			—			—			—			—
Operating income (loss)		29,904			94,542			80,488			109,504			77,256			63,894			21,504			24,930			59,698			56,345			(12,475		)
Interest expense, net		32,003			30,775			17,779			17,666			20,148			22,075			21,539			17,483			19,175			25,719			22,502
Income (loss) before income taxes and extraordinary charge		1,910			63,294			62,786			90,904			56,522			43,824			47			2,091			42,448			32,838			(33,712		)
Miscellaneous, net		(5,742		)	351			75			984			(1,698		)	(2,439		)	(1,357		)	(249		)	(1,666		)	(2,455		)	(2,265		)
Income tax expense (benefit)		(12,425		)	21,263			10,442			25,651			6,512			2,788			4,551			10,058			11,390			10,543			(4,048		)
Income (loss) before extraordinary charge		14,335			42,031			52,344			65,253			50,010			41,036			(4,504		)	(7,967		)	31,058			22,295			(29,664		)
Extraordinary charge — net of tax		—			(894		)	—			—			—			—			(2,780		)	—			—			(1,286		)	—
Net income (loss)		$	14,335		$	41,137		$	52,344		65,253			$	50,010		$	41,036		$	(7,284	)	$	(7,967	)	$	31,058		$	21,009		$	(29,664	)
Per Common Share Data: (c)
Income (loss) before extraordinary charge		$	0.35		$	1.02		$	1.27		$	1.58		$	1.21		$	0.99		$	(0.11	)*	$	(0.19	)	$	0.75	*	$	0.54		$	(0.83	)
Extraordinary charge — early repayment of debt		$	—		$	(0.02	)	$	—		$	—		$	—		$	—		$	(0.07	)	$	—		$	—		$	(0.03	)	$	—
Net Income (loss)		$	0.35		$	1.00		$	1.27		$	158.00		$	1.21		$	0.99		$	(0.18	)*	$	(0.19	)	$	0.75	*	$	0.51		$	(0.83	)
Cash dividends		$	0.060		$	0.060		$	0.060		$	0.045		$	0.040		$	0.040		$	0.040		$	0.040		$	0.040		$	0.020		$	0.040
Book value		$	9.57		$	9.27		$	8.33		$	7.11		$	5.58		$	4.41		$	3.46	*	$	3.67		$	3.91		$	3.20		$	2.71
Balance Sheet Summary:
Working capital		$	179,171		$	203,450		$	124,531		$	154,242		$	147,040		$	133,542		$	88,455		$	88,395		$	99,724		$	72,688		$	11,227
Total assets		$	1,221,418		$	1,215,695		$	705,420		$	655,762		$	601,439		$	579,124		$	536,722		$	497,604		$	438,683		$	422,846		$	434,566
Notes payable and current maturities of long-term debt		$	4,665		$	5,099		$	4,657		$	4,353		$	5,889		$	11,596		$	35,850		$	18,187		$	4,493		$	25,643		$	86,424
Long-term debt, less current maturities		$	448,979		$	467,242		$	165,037		$	183,753		$	199,784		$	224,743		$	198,334		$	182,988		$	152,631		$	159,554		$	131,534
Total debt		$	453,644		$	472,341		$	169,694		$	188,106		$	205,673		$	236,339		$	234,184		$	201,175		$	157,124		$	185,197		$	217,958
Senior secured debt (included in Total Debt)		$	253,644		$	272,341		$	79,199		$	94,730		$	110,161		$	137,221		$	134,914		$	101,753		$	58,454		$	86,677		$	167,958
Total stockholders’ equity		$	393,470		$	380,932		$	342,559		$	294,259		$	230,871		$	182,516		$	143,135		$	152,074		$	161,696		$	132,293		$	112,112
Cash Flow Summary:
Operating cash flow		$	99,555		$	87,833		$	130,803		$	81,452		$	85,016		$	49,615		$	11,391		$	32,712		$	60,664		$	44,970		$	(1,573	)
Depreciation & amortization (d)		$	70,973		$	55,390		$	36,027		$	34,536		$	32,591		$	29,796		$	28,024		$	26,127		$	25,177		$	26,034		$	24,090
Capital expenditures		$	80,388		$	112,632		$	92,128		$	69,649		$	53,518		$	50,231		$	34,314		$	35,194		$	25,547		$	15,201		$	18,043
Business acquisitions		$	—		$	239,539		$	—		$	—		$	—		$	—		$	—		$	36,178		$	—		$	—		$	—
Financing activities, net		$	(21,163	)	$	254,382		$	(22,619	)	$	(19,634	)	$	(32,498	)	$	348		$	27,313		$	40,173		$	(30,291	)	$	(40,339	)	$	25,110
Cashflow Ratios:
EBITDA (e)		$	103,469		$	147,599		$	115,356		$	142,043		$	108,268		$	94,604		$	47,849		$	44,601		$	85,500		$	81,705		$	12,380
EBITDA /interest expense, net		3.23			4.80			6.49			8.04			5.37			4.29			2.22			2.85			4.36			3.08			0.48
Key Indicators (as a percentage of net sales):
Gross margin		6.4		%	9.7		%	11.1		%	13.7		%	10.2		%	9.0		%	6.2		%	8.0		%	12.0		%	11.9		%	4.0		%
Selling, general and administrative expenses		5.3		%	5.4		%	5.7		%	5.6		%	4.4		%	4.0		%	4.3		%	5.3		%	5.5		%	5.6		%	5.7		%
Operating income (loss)		1.2		%	4.3		%	5.4		%	8.1		%	5.8		%	5.0		%	1.9		%	2.7		%	6.5		%	6.3		%	-1.6		%
Interest expense, net		1.3		%	1.4		%	1.2		%	1.3		%	1.5		%	1.7		%	1.9		%	1.9		%	2.1		%	2.9		%	2.8		%
Net income (loss)		0.6		%	1.9		%	3.5		%	4.8		%	3.8		%	3.2		%	-0.6		%	-0.9		%	3.4		%	2.4		%	-3.6		%

 

(a) The Company acquired WLR Foods on January 27, 2001 for $239.5 million and the assumption of $45.5 million of indebtedness.  The acquisition has been accounted for as a purchase, and the results of operations for this acquisition have been included in our consolidated results of operations since the acquisition date.

 

(b) Fiscal 1999 and 1993 had 53 weeks.

 

(c)  Historical per share amounts represent both basic and diluted and have been restated to give effect to a stock dividend issued on July 30, 1999.  See Note F of the Consolidated Financial Statements of the Company included in our Annual Report on Form 10-K filed in year 2001.

 

(d)  Includes amortization of capitalized financing costs of approximately

$

1,417

$

1,860

$

1,236

$

1,063

$

993

$

1,091

1761

1100

1300

1600

500

 

(e)  “EBITDA” is defined as the sum of net income (loss before extraordinary charges, interest, taxes, depreciation and amortization.  EBITDA is presented because it is used by us, and we believe it is frequently used by securities analysts, investors and other interested parties, in addition to and not in lieu of GAAP results, to compare the performance of companies.  EBITDA is not a measurement of financial performance under generally accepted accounting principles and 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 generally accepted accounting principles.  EBITDA is calculated as follows

 

Net Income		$	14,335		$	41,137		$	52,344		$	65,253		$	50,010		$	41,036		$	(7,284	)	$	(7,967	)	$	31,058		$	21,009		$	(29,664	)
Add:
Extraordinary charge-net of tax		—			894			—			—			—			—			2,780			—			—			1,286			—
Income Tax Expense (benefit)		(12,425		)	21,263			10,442			25,651			6,512			2,788			4,551			10,058			11,390			10,543			(4,048		)
Interest expense, net		32,003			30,775			17,779			17,666			20,148			22,075			21,539			17,483			19,175			25,719			22,502
Depreciation and amortization		70,973			55,390			36,027			34,536			32,591			29,796			28,024			26,127			25,177			26,034			24,090
Minus:
Amortization of capitalized financing costs		1,417			1,860			1,236			1,063			993			1,091			1,761			1,100			1,300			1,600			500
EBITDA		$	103,469		$	147,599		$	115,356		$	142,043		$	108,268		$	94,604		$	47,849		$	44,601		$	85,500		$	81,705		$	12,380

 

3

 

 

Pilgrim’s Pride Corporation

Selected Financial Data

for quarters ended:

 

Our selected financial data is derived from our financial statements. Historical results should not be taken as necessarily indicative of the results that may be expected for any future period. You should read this financial data in conjunction with the appropriate period financial statements and the related notes and “Management’s Discussion and Analysis of Results of Operations and Financial Condition” included in our SEC filings.

 

		Quarters ended
		03/29/03									12/28/02					09/28/02				06/29/02				03/30/02				12/29/01				09/29/01				06/30/01				03/31/01			(a)	12/30/00				09/30/00				07/01/00				04/01/00				01/01/00
		(in thousands except per share data)
Income Statement Data:																																				*				*				*								*				*				*
Net sales		$		630,592							$	627,405				$	639,819			$	637,116			$	600,753			$	656,030			$	641,251			$	645,836			$	541,593			$	386,032			$	379,375			$	391,979			$	373,260			$	354,825
Gross margin		25,672									27,999					31,605				46,309				28,631				55,670				61,943				75,625				29,216				47,166				39,657				46,665				34,029				45,477
Selling, general and administrative expenses		35,576									32,045					35,069				32,654				33,003				34,535				30,826				30,139				34,488				23,955				24,022				20,316				20,747				20,255
Non-recurring recoveries		(11,324						)			(14,387				)	(65			)	(691			)	-				(2,195			)	-				-				-				-				-				-				-				-
Operating income (loss)		1,409									10,341					(3,100			)	14,045				(4,371			)	23,330				31,117				45,486				(5,272			)	23,211				15,635				26,349				13,282				25,222
Interest expense, net		9,942									9,476					7,137				9,031				7,261				8,573				9,536				10,014				7,085				4,140				4,210				4,967				4,699				3,903
Miscellaneous, net		(29,896						)			(1,766				)	(2,580			)	(3,378			)	873				(387			)	(997			)	1,751				(281			)	(122			)	327				465				(519			)	(198			)
Income (loss) before income taxes and extraordinary charge		18,146									2,981					(8,146			)	6,525				(11,055			)	15,679				22,017				34,323				(12,118			)	19,072				11,782				20,319				9,178				21,507
Income tax expense (benefit)		7,381									225					(4,973			)	3,259				(13,399			)	2,688				8,188				9,056				(2,316			)	6,335				463				3,175				155				6,649
Income (loss) before extraordinary charge		10,765									2,756					(4,972			)	3,266				1,252				12,991				13,829				25,267				(9,802			)	12,737				11,319				17,144				9,023				14,858
Extraordinary charge - net of tax		-									-					-				-				-				-				(894			)	-				-				-				-				-				-				-
Net income (loss)		$		10,765							$	2,756				$	(3,174		)	$	3,266			$	1,252			$	12,991			12,935				$	25,267			$	(9,802		)	$	12,737			$	11,319			$	17,144			$	9,023			$	14,858
Per Common Share Data: (c)
Income (loss) before extraordinary charge		$		0.26							$	0.07				$	(0.08		)	$	0.08			$	0.03			$	0.32			$	0.34			$	0.61			$	(0.24		)	$	0.31			$	0.28			$	0.41			$	0.22			$	0.36
Extraordinary charge - early repayment of debt		-									-					-				-				-				$	-			$	(0.02		)	$	-			$	-			$	-			$	-			$	-			$	-			$	-
Net Income (loss)		$		0.26							$	0.07				$	(0.08		)	$	0.08			$	0.03			$	0.32			$	0.32			$	0.61			$	(0.24		)	$	0.31			$	0.28			$	0.41			$	0.22			$	0.36
Cash dividends		$		0.015							$	0.015				$	0.015			$	0.015			$	0.015			$	0.015			$	0.015			$	0.015			$	0.015			$	0.015			$	0.015			$	0.015			$	0.015			$	0.015
Book value		$		9.86							$	9.61				$	9.57			$	9.68			$	9.57			$	9.53			$	9.27			$	8.96			$	8.37			$	8.63			$	8.33			$	8.05			$	7.66			$	7.45
Balance Sheet Summary:
Working capital		$		250,893							$	171,582				$	179,171			$	157,980			$	149,869			$	143,360			$	203,350			$	177,194			$	166,456			$	107,508			$	124,531			$	142,915			$	139,465			$	148,659
Total assets		$		1,259,111							$	1,219,911				$	1,221,418			$	1,218,365			$	1,195,552			$	1,153,438			$	1,215,695			$	1,204,820			$	1,176,261			$	714,340			$	705,420			$	686,450			$	665,158			$	652,970
Notes payable and current maturities of long-term debt		$				4,272					$			3,525		$		4,665		$		63,210		$		60,126		$		5,177		$		5,099		$		59,022		$		63,947		$	14,242			$	4,657			$	4,729			$	5,041			$	4,103
Long-term debt, less current maturities		$				491,825					$			434,103		$		448,979		$		418,064		$		410,628		$		396,975		$		467,242		$		444,125		$		460,346		$	156,546			$	165,037			$	172,686			$	175,350			$	163,230
Total debt		$				496,096					$			437,628		$		453,644		$		481,274		$		470,754		$		402,152		$		472,341		$		503,147		$		524,293		$	170,788			$	169,694			$	177,415			$	180,391			$	167,333
Senior secured debt (included in Total Debt)		$				296,096					$			237,628		$		253,644		$		281,274		$		270,754		$		202,152		$		272,341		$		412,540		$		433,723		$	80,256			$	79,199			$	86,957			$	87,873			$	73,931
Total stockholders' equity		$				405,330					$			395,115		$		393,470		$		397,910		$		393,641		$		391,644		$		380,932		$		368,479		$		344,261		$	354,676			$	342,559			$	332,110			$	316,898			$	308,496
Cash Flow Summary:
Operating cash flow		$				(56,617		)			$			40,617		$		60,789		$		15,704		$		(58,711	)	$		81,773		$		70,581		$		48,738		$		(47,486	)	$	16,000			$	69,097			$	18,298			$	11,588			$	31,820
Depreciation & amortization (d)		$				17,803					$			17,510		$		18,114		$		17,813		$		17,647		$		17,399		$		15,962		$		18,608		$		12,152		$	8,668			$	9,279			$	9,284			$	8,878			$	8,586
Capital expenditures		$				15,907					$			9,116		$		23,958		$		24,199		$		14,898		$		17,333		$		(7,615	)	$		59,847		$		27,793		$	32,607			$	35,195			$	21,565			$	20,956			$	14,412
Business acquisitions		$				-					$			-		$		-		$		-		$		-		$		-		$		-		$		-		$		239,539		$	-			$	-
Financing activities, net		$				57,852					$			(16,637	)	$		(28,240	)	$		9,900		$		68,015		$		(6,518	)	$		(31,646	)	$		(21,804	)	$		307,193		$	436			$	(8,628		)	$	(4,957		)	$	(30,465		)	$	21,430
Cashflow Ratios:
EBITDA (e)		$				45,508					$			29,594		$		16,736		$		33,012		$		12,415		$		41,305		$		46,410		$		62,664		$		6,851		$	31,673			$	25,020			$	34,198			$	22,385			$	33,733
EBITDA (last four qtrs.)		$				124,850					$			91,757		$		103,468		$		133,142		$		162,794		$		157,231		$		147,599		$		126,209		$		97,742		$	113,276			$	115,336			$	125,705			$	129,717			$	141,252
Key Indicators (as a percentage of net sales):
Gross margin		4.1						%			4.5				%	4.9			%	7.3			%	4.8			%	8.5			%	9.7			%	11.7			%	5.4			%	12.2			%	10.5			%	11.9			%	9.1			%	12.8			%
Selling, general and administrative expenses		3.8						%			2.8				%	5.4			%	5.1			%	5.5			%	4.9			%	4.8			%	4.7			%	6.4			%	6.2			%	6.3			%	5.2			%	5.6			%	5.7			%
Operating income (loss)		0.2						%			1.6				%	-0.5			%	2.2			%	-0.7			%	3.6			%	4.9			%	7.0			%	-1.0			%	6.0			%	4.1			%	6.7			%	3.6			%	7.1			%
Interest expense, net		1.6						%			1.5				%	1.1			%	1.4			%	1.2			%	1.3			%	1.5			%	1.6			%	1.3			%	1.1			%	1.1			%	1.3			%	1.3			%	1.1			%
Net income (loss)		1.7						%			0.4				%	-0.5			%	0.5			%	0.2			%	2.0			%	2.0			%	3.9			%	-1.8			%	3.3			%	3.0			%	4.4			%	2.4			%	4.2			%
(a)  The Company acquired WLR Foods on January 27, 2001 for $239.5 million and the assumption of $45.5 million of indebtedness.  The acquisition has been accounted for as a purchase, and the results of operations for this acquisition have been included in our consolidated results of operations since the acquisition date.
(b)  Fiscal quarter ended January 1, 1999 had 14 weeks.
(c)  Historical per share amounts represent both basic and diluted and have been restated to give effect to a stock dividend issued on July 30, 1999.  See Note F of the Consolidated Financial Statements of the Company included in our Annual Report on Form 10-K filed in year 2001.
(d)  Includes amortization of capitalized financing costs of approximately		383									372					369				357				346				$		346		$		1,105		$		281		$		268		$		207		$		251		$		372		$		370		$		263
(e)  “EBITDA” is defined as the sum of net income (loss) before extraordinary charges, interest, taxes, depreciation and amortization.  EBITDA is presented because it is used by us, and we believe it is frequently used by securities analysts, investors and other interested parties, in addition to and not in lieu of GAAP results, to compare the performance of companies.  EBITDA is not a measurement of financial performance under generally accepted accounting principles and 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 generally accepted accounting principles.  EBITDA is calculated as follows:
Net Income		$	10,765		$	2,756		$	(3,174	)	$	3,266		$	1,252		$	12,991		$	12,935		$	25,267		$	(9,802	)	$	12,737		$	11,319		$	17,144		$	9,023		$	14,858
Add:
Extraordinary charge-net of tax		-			-			-			-			-			-			(894		)	-			-			-			-			-			-			-
Income Tax Expense (benefit)		7,381			225			(4,973		)	3,259			(13,399		)	2,688			8,188			9,056			(2,316		)	6,335			463			3,175			155			6,649
Interest expense, net		9,942			9,476			7,137			9,031			7,261			8,573			9,536			10,014			7,085			4,140			4,210			4,967			4,699			3,903
Depreciation and amortization		17,803			17,510			18,114			17,813			17,647			17,399			15,962			18,608			12,152			8,668			9,279			9,284			8,878			8,586
Minus:
Amortization of capitalized financing costs		383			372			369			357			346			346			1,105			281			268			207			251			372			370			263
EBITDA		$	45,508		$	29,594		$	16,736		$	33,012		$	12,415		$	41,305		$	46,410		$	62,664		$	6,851		$	31,673		$	25,020		$	34,198		$	22,385		$	33,733

 

4

 

	Quarters ended
		10/02/99			07/03/99			04/03/99			01/02/99		(b)	09/26/98			06/27/98			03/28/98			12/27/97			09/27/97			6/28/97			03/29/97			12/28/96
	(in thousands except per share data)
					*			*			*						*			*			*
Income Statement Data:
Net sales		$	317,261		$	344,160		$	329,894		$	366,088		$	340,712		$	328,500		$	324,446		$	337,887		$	341,274		$	335,168		$	303,401		$	297,806
Gross margin		46,130			49,415			46,262			43,901			47,126			32,736			26,861			29,380			33,860			27,285			23,085			30,267
Selling, general and administrative expenses		17,316			20,203			20,970			17,715			15,682			13,693			15,463			14,009			8,567			14,658			13,425			13,953
Non-recurring recoveries		-			-			-			-			-			-			-			-			-			-			-			-
Operating income (loss)		28,814			29,212			25,292			26,186			31,444			19,043			11,398			15,371			25,293			12,627			9,660			16,314
Interest expense, net		4,535			4,308			4,090			4,733			4,824			5,195			5,093			5,036			5,770			5,572			5,284			5,449
Miscellaneous, net		1,348			(191		)	(261		)	88			(212		)	(535		)	(488		)	(463		)	595			(128		)	(397		)	(2,509		)
Income (loss) before income taxes and extraordinary charge		22,549			25,274			21,624			21,457			26,063			13,970			6,219			10,270			19,142			7,071			4,674			12,937
Income tax expense (benefit)		6,113			6,957			7,044			5,537			5,773			2,135			(549		)	(847		)	451			(215		)	(280		)	2,832
Income (loss) before extraordinary charge		16,436			18,317			14,580			15,920			20,290			11,835			6,768			11,117			18,691			7,286			4,954			10,105
Extraordinary charge - net of tax		-			-			-			-			-			-			-			-			-			-			-			-
Net income (loss)		16,436			$	18,317		$	14,580		$	15,920		$	20,290		$	11,835		$	6,768		$	11,117		$	18,691		$	7,286		$	4,954		$	10,105
Per Common Share Data: (c)
Income (loss) before extraordinary charge		$	0.41		$	0.44		$	0.35		$	0.38		$	0.49		$	0.29		$	0.16		$	0.27		$	0.45		$	0.18		$	0.12		$	0.24
Extraordinary charge - early repayment of debt		$	-		$	-		$	-		$	-		$	-		$	-		$	-		$	-		$	-		$	-		$	-		$	-
Net Income (loss)		$	0.41		$	0.44		$	0.35		$	0.38		$	0.49		$	0.29		$	0.16		$	0.27		$	0.45		$	0.18		$	0.12		$	0.24
Cash dividends		$	0.015		$	0.010		$	0.010		$	0.010		$	0.010		$	0.010		$	0.010		$	0.010		$	0.010		$	0.010		$	0.010		$	0.010
Book value		$	7.11		$	6.73		$	6.30		$	5.95		$	5.58		$	5.08		$	4.82		$	4.67		$	4.41		$	3.97		$	3.80		$	3.69
Balance Sheet Summary:
Working capital		$	154,242		$	158,858		$	150,686		$	144,981		$	147,040		$	139,713		$	132,518		$	114,948		$	133,542		$	99,829		$	98,526		$	100,925
Total assets		$	655,762		$	657,974		$	626,745		$	607,365		$	601,439		$	578,541		$	574,805		$	564,611		$	579,124		$	566,725		$	531,579		$	525,628
Notes payable and current maturities of long-term debt		$	4,353		$	7,928		$	6,338		$	4,629		$	5,889		$	11,638		$	11,589		$	8,708		$	11,596		$	30,884		$	33,645		$	25,564
Long-term debt, less current maturities		$	183,753		$	195,283		$	197,971		$	185,358		$	199,784		$	216,741		$	219,394		$	204,890		$	224,743		$	210,358		$	193,546		$	195,957
Total debt		$	188,106		$	203,211		$	204,309		$	189,987		$	205,673		$	228,379		$	230,983		$	213,598		$	236,339		$	241,242		$	227,191		$	221,521
Senior secured debt (included in Total Debt)		$	94,730		$	109,884		$	111,019		$	96,735		$	110,161		$	129,149		$	131,790		$	114,443		$	137,221		$	142,161		$	128,148		$	122,461
Total stockholders' equity		$	294,259		$	278,447		$	260,543		$	246,377		$	230,871		$	210,369		$	199,573		$	193,220		$	182,516		$	164,239		$	157,366		$	152,826
Cash Flow Summary:
Operating cash flow		$	44,926		$	7,086		$	(8,009	)	$	37,449		$	52,784		$	13,487		$	(13,684	)	$	32,429		$	24,710		$	15,233		$	(6,983	)	$	16,655
Depreciation & amortization (d)		$	8,546		$	8,869		$	8,468		$	8,653		$	8,098		$	8,427		$	8,014		$	8,052		$	8,050		$	7,517		$	7,094		$	7,135
Capital expenditures		$	17,479		$	13,402		$	25,935		$	12,833		$	14,084		$	13,633		$	10,449		$	15,352		$	9,456		$	28,613		$	7,967		$	4,195
Business acquisitions
Financing activities, net		$	(15,766	)	$	(1,548	)	$	10,618		$	(12,938	)	$	(23,186	)	$	(15,570	)	$	29,450		$	(23,192	)	$	(5,356	)	$	13,600		$	5,220		$	(13,116	)
Cashflow Ratios:
EBITDA (e)		$	35,389		$	38,210		$	33,921		$	34,525		$	38,808		$	27,308		$	19,046		$	23,106		$	32,769		$	19,839		$	16,767		$	25,229
EBITDA (last four qtrs.)		$	142,045		$	145,464		$	134,562		$	119,688		$	108,268		$	102,229		$	94,760		$	92,481		$	94,604		$	61,835		$	41,995		$	25,229
Key Indicators (as a percentage of net sales):
Gross margin		14.5		%	14.4		%	14.0		%	12.0		%	13.8		%	10.0		%	8.3		%	8.7		%	9.9		%	8.1		%	7.6		%	10.2		%
Selling, general and administrative expenses		5.5		%	5.9		%	6.4		%	4.8		%	4.6		%	4.2		%	4.8		%	4.1		%	2.5		%	4.4		%	4.4		%	4.7		%
Operating income (loss)		9.1		%	8.5		%	7.7		%	7.2		%	9.2		%	5.8		%	3.5		%	4.5		%	7.4		%	3.8		%	3.2		%	5.5		%
Interest expense, net		1.4		%	1.3		%	1.2		%	1.3		%	1.4		%	1.6		%	1.6		%	1.5		%	1.7		%	1.7		%	1.7		%	1.8		%
Net income (loss)		5.2		%	5.3		%	4.4		%	4.3		%	6.0		%	3.6		%	2.1		%	3.3		%	5.5		%	2.2		%	1.6		%	3.4		%
(a) The Company acquired WLR Foods on January 27, 2001 for $239.5 million and the assumption of $45.5 million of indebtedness.  The acquisition has been accounted for as a purchase, and the results of operations for this acquisition have been included in our consolidated results of operations since the acquisition date.
(b) Fiscal quarter ended January 1, 1999 had 14 weeks.
(c) Historical per share amounts represent both basic and diluted and have been restated to give effect to a stock dividend issued on July 30, 1999.  See Note F of the Consolidated Financial Statements of the Company included in our Annual Report on Form 10-K filed in year 2001.
(d) Includes amortization of capitalized financing costs of approximately		$	241		$	241		$	261		$	318		$	177		$	284		$	280		$	252		$	193		$	321		$	285		$	292
(e) “EBITDA” is defined as the sum of net income (loss) before extraordinary charges, interest, taxes, depreciation and amortization.  EBITDA is presented because it is used by us, and we believe it is frequently used by securities analysts, investors and other interested parties, in addition to and not in lieu of GAAP results, to compare the performance of companies.  EBITDA is not a measurement of financial performance under generally accepted accounting principles and 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 generally accepted accounting principles.  EBITDA is calculated as follows:
Net Income		$	16,436		$18,317			$14,580			$15,920			$20,290			$11,835			$6,768			$11,117			$18,691			$7,286			$4,954			$10,105
Add:
Extraordinary charge-net of tax		-			-			-			-			-			-			-			-			-			-			-			-
Income Tax Expense (benefit)		6,113			6,957			7,044			5,537			5,773			2,135			(549		)	(847		)	451			(215		)	(280		)	2,832
Interest expense, net		4,535			4,308			4,090			4,733			4,824			5,195			5,093			5,036			5,770			5,572			5,284			5,449
Depreciation and amortization		8,546			8,869			8,468			8,653			8,098			8,427			8,014			8,052			8,050			7,517			7,094			7,135
Minus:
Amortization of capitalized financing costs		241			241			261			318			177			284			280			252			193			321			285			292
EBITDA		$35,389			$38,210			$33,921			$34,525			$38,808			$27,308			$19,046			$23,106			$32,769			$19,839			$16,767			$25,229

 

5

 

Pilgrim’s Pride Corporation

Statistical Management Discussion and Analysis

for quarters ended:

 

Our Statistical Management Discussion and Analysis data is derived from our financial statements and internal reports. Historical results should not be taken as necessarily indicative of the results that may be expected for any future period. You should read this financial data in conjunction with the appropriate period financial statements and the related notes and “Management’s Discussion and Analysis of Results of Operations and Financial Condition” included in our SEC filings.

 

 

		Quarters Ended
		03/29/03		12/28/02		09/28/02		06/29/02		03/30/02		12/29/01		09/29/01		06/30/01		03/31/01	(a)	12/30/00		09/30/00		07/01/00		04/01/00		01/01/00
United States
Chicken Operations:
U.S. Chicken Sales (000’s)		$422,493		$390,034		$417,387		$427,325		$398,608		$405,738		$427,191		$422,985		$356,341		$265,824		$263,549		$282,973		$253,687		$250,178
U.S. Chicken Sales divided by U.S.Chicken Net Pounds Produced		$0.7255		$0.6617		$0.6883		$0.6934		$0.6872		$0.7075		$0.7470		$0.7232		$0.7096		$0.7221		$0.7173		$0.7187		$0.6624		$0.7140
U.S. Chicken Net Pounds Produced (000’s)		582,383		589,433		606,383		616,274		580,037		573,464		571,867		584,896		502,173		368,143		367,431		393,755		382,955		350,409
Other Operations:
Other Sales (000’s)		52,801		48,523		52,846		48,330		49,543		42,972		45,843		45,719		46,568		41,725		36,706		27,940		42,843		34,201
U.S. Chicken Sales & Other Sales Totals:
U.S. Chicken Sales & Other Sales (000’s)		475,294		438,557		470,233		475,655		448,151		448,710		473,034		468,704		402,909		307,552		300,255		310,913		296,530		284,379
U.S. Chicken & Other Operating Income (000’s)		1,628		4,008		4,442		14,409		3,701		7,160		27,700		27,971		1,795		20,631		8,411		12,909		3,502		21,106
U.S. Chicken & Other Operating Income as a percent of U.S. Chicken & Other Sales		0.34	%	0.91	%	0.94	%	3.03	%	0.83	%	1.60	%	5.86	%	5.97	%	0.45	%	6.71	%	2.80	%	4.15	%	1.18	%	7.42	%
Turkey
U.S. Turkey Sales (000’s)		62,407		94,379		82,832		76,656		72,226		116,404		88,615		87,380		62,840		—		—		—		—		—
U.S. Turkey Sales divided by U.S. Turkey Net Pounds Produced		$0.5672		$0.9047		$0.8353		$0.7304		$0.6222		$1.0311		$0.7896		$0.7875		$0.8282		—		—		—		—		—
U.S. Turkey Operating Income (000’s)		(15,403	)	(14,268	)	(10,883	)	(6,884	)	(7,559	)	5,503		2,406		3,750		(1,867	)	—		—		—		—		—
U.S. Turkey Operating Income as a percent of U.S. Turkey Sales		—24.68	%	—15.12	%	—13.14	%	—8.98	%	—10.47	%	4.73	%	2.72	%	4.29	%	—2.97	%	—		—		—		—		—
U.S. Turkey Net Pounds Produced (000’s)		110,024		104,321		99,165		104,946		116,074		112,896		112,233		110,958		75,879		—		—		—		—		—
U.S. Summary
U.S. Sales (000’s)**		537,701		532,936		553,065		552,311		520,377		565,114		561,649		556,084		465,749		307,552		300,255		310,913		296,530		284,379
U.S. Cost of Sales (000’s)		522,291		517,183		531,360		517,669		497,296		524,708		507,112		499,916		436,038		268,120		273,604		282,676		276,987		247,149
U.S. Gross Margin (000’s)		15,410		15,753		21,705		34,642		23,081		40,406		54,537		56,168		29,711		39,432		26,651		28,237		19,543		37,230
U.S. Gross Margin as a percent of U.S. Sales		2.87	%	2.96	%	3.92	%	6.27	%	4.44	%	7.15	%	9.71	%	10.10	%	6.38	%	12.82	%	8.88	%	9.08	%	6.59	%	13.09	%
U.S. Selling, General and Administrative Expenses (000’s)		29,185		26,013		28,146		27,117		26,939		27,743		24,431		24,448		29,783		18,801		18,240		15,328		16,041		16,124
U.S. Selling, General and Administrative Expenses as a percent of U.S Sales		5.43	%	4.88	%	5.09	%	4.91	%	5.18	%	4.91	%	4.35	%	4.40	%	6.39	%	6.11	%	6.07	%	4.93	%	5.41	%	5.67	%
U.S. Operating Income (000’s)		(13,775	)	(10,260	)	(6,441	)	7,525		(3,858	)	12,663		30,106		31,720		(72	)	20,631		8,411		12,909		3,502		21,106
U.S. Operating Income as a percent of U.S. Sales		—2.56	%	—1.93	%	—1.16	%	1.36	%	—0.74	%	2.24	%	5.36	%	5.70	%	—0.02	%	6.71	%	2.80	%	4.15	%	1.18	%	7.42	%
Mexico
Chicken Operations:
Mexico Chicken Sales (000’s) ©		90,247		88,092		81,260		80,308		75,674		86,528		76,054		84,078		70,447		72,853		73,176		75,686		71,804		64,939
Mexico Chicken Sales divided by Mexico Chicken Net Pounds Produced		$0.5759		$0.5898		$0.5984		$0.6177		$0.5820		$0.5812		$0.5455		$0.6411		$0.5039		$0.5222		$0.5634		$0.6585		$0.6309		$0.5141
Mexico Other Operations:
Mexico Other Sales (000’s) (c)		2,644		6,377		5,494		4,498		4,702		4,388		3,548		5,674		5,397		5,627		5,945		5,380		4,926		5,507
Mexico Chicken Operating Income (000’s)		3,872		6,214		3,276		5,830		(514	)	8,471		1,011		13,767		(5,201	)	2,580		7,225		13,439		9,779		4,116
Mexico Operating Income as a percent of Mexico Chicken Sales		4.17	%	6.58	%	3.78	%	6.88	%	—0.64	%	9.32	%	1.27	%	15.34	%	—6.86	%	3.29	%	9.13	%	16.58	%	12.74	%	5.84	%
Mexico Net Pounds Produced (000’s)		156,717		149,356		135,789		130,011		130,027		148,876		139,415		131,152		139,799		139,510		129,877		114,931		113,805		126,313
Consolidated Operations
Chicken Operations:
Chicken Sales from all Divisions (000’s)		512,740		478,126		498,647		507,632		474,282		492,266		503,245		507,063		426,788		338,677		336,725		358,659		325,491		315,117
Chicken Sales from all divisions divided by Chicken Net Pounds Produced from all Divisions		$0.6937		$0.6472		$0.6719		$0.6802		$0.6679		$0.6815		$0.7075		$0.7081		$0.6648		$0.6671		$0.6771		$0.7051		$0.6552		$0.6610
Chicken Net Pounds Produced from all Divisions (000’s)		739,100		738,789		742,172		746,285		710,064		722,340		711,282		716,048		641,972		507,653		497,308		508,686		496,760		476,722
Other Operations:
Other Sales (000’s)©		55,445		54,900		58,340		52,828		54,245		47,360		49,391		51,393		51,965		47,352		42,651		33,320		47,769		39,708
Totals All Operations:
Total Net Sales (000’s)		630,592		627,405		639,819		637,116		600,753		656,030		641,251		645,836		541,593		386,032		379,375		391,979		373,260		354,825
Total Cost of Sales (000’s)		604,919		599,406		608,213		590,807		572,122		600,361		579,307		570,211		512,377		338,866		339,718		345,314		339,231		309,348
Gross Margin from all operations (000’s)		25,673		27,999		31,606		46,309		28,631		55,669		61,944		75,625		29,216		47,166		39,658		46,665		34,029		45,477
Gross Margin from all operations as a percent of Total Net Sales		4.07	%	4.46	%	4.94	%	7.27	%	4.77	%	8.49	%	9.66	%	11.71	%	5.39	%	12.22	%	10.45	%	11.90	%	9.12	%	12.82	%
Total Selling, General and Administrative Expenses (000’s)		35,576		32,045		34,771		32,954		33,003		34,535		30,827		30,138		34,488		23,955		24,022		20,316		20,747		20,255
Total Selling, General and Administrative Expenses as a percent of Total Net Sales		5.64	%	5.11	%	5.43	%	5.17	%	5.49	%	5.26	%	4.81	%	4.67	%	6.37	%	6.21	%	6.33	%	5.18	%	5.56	%	5.71	%
Operating Income from all operations (000’s)		(9,903	)	(4,046	)	(3,165	)	13,355		(4,372	)	21,134		31,117		45,487		(5,272	)	23,211		15,636		26,349		13,282		25,222
Operating Income from all operations as a percent of Total Net Sales		1.57	%	—0.64	%	—0.49	%	2.10	%	—0.73	%	3.22	%	4.85	%	7.04	%	—0.97	%	6.01	%	4.12	%	6.72	%	3.56	%	7.11	%
Avian Influenza Reimbursement (000’s)		1,749		14,301		—		—		—		—		—		—		—		—		—		—		—		—
Vitamin Settlements (000’s)		9,564		86		65		691		—		2,195		—		—		—		—		—		—		—		—
Total Adjustments (000’S)		11,313		14,387		65		691		—		2,195		—		—		—		—		—		—		—		—
Consolidated Adjusted Chicken and Turkey Operating Income (000’s)		1,410		10,341		(3,100	)	14,046		(4,372	)	23,329		31,117		45,487		(5,272	)	23,211		15,636		26,349		13,282		25,222
Consolidated Adjusted Chicken and Turkey Income  as a percent of Total Net Sales		0.22	%	1.65	%	—0.48	%	2.20	%	—0.73	%	3.56	%	4.85	%	7.04	%	—0.97	%	6.01	%	4.12	%	6.72	%	3.56	%	7.11	%

 

(a)  The acquisition of WLR Foods has been accounted for as a purchase, and the results of operations for this acquisition have been included in our consolidated results of operations since January 27, 2001,  the acquisition date.

 

(b)  14 week Quarter.

 

(c)  Certain item previously classified under Mexico have been reclassified under sale of other products-Mexico.
Amounts reclassified by quarter were:		$—		$—		$123		$—		$—		$—		$7		$10		$10		$10		$146		$132		$122		$135

 

 

		Quarters Ended
		10/02/99				07/03/99				04/03/99				01/02/99(b)				09/26/98				06/27/98				03/28/98				12/27/97				09/27/97				6/28/97				03/29/97				12/28/96
United States
Chicken Operations:
U.S. Chicken Sales (000’s)		$		249,181		$		254,794		$		236,673		$		222,848		$		243,772		$		228,719		$		218,268		$		218,634		$		233,779		$		227,111		$		204,128		$		193,147
U.S. Chicken Sales divided by U.S.Chicken Net Pounds Produced		$		0.7220		$		0.7317		$		0.6953		$		0.6517		$		0.7828		$		0.7196		$		0.6908		$		0.6816		$		0.7017		$		0.6926		$		0.7090		$		0.7163
U.S. Chicken Net Pounds Produced (000’s)		345,141				348,232				340,387				341,931				311,428				317,849				315,948				320,773				333,184				327,928				287,915				269,655
Other Operations:
Other Sales (000’s)		32,151				26,461				36,690				44,105				34,391				32,656				36,074				40,942				34,382				33,619				38,095				38,391
U.S. Chicken Sales & Other Sales Totals:
U.S. Chicken Sales & Other Sales (000’s)		281,332				281,255				273,363				266,953				278,163				261,375				254,342				259,576				268,161				260,730				242,223				231,538
U.S. Chicken & Other Operating Income (000’s)		25,619				22,076				21,741				18,741				22,266				8,434				3,104				2,473				10,300				4,622				4,031				10,369
U.S. Chicken & Other Operating Income as a percent of U.S. Chicken & Other Sales		9.11			%	7.85			%	7.95			%	7.02			%	8.00			%	3.23			%	1.22			%	0.95			%	3.84			%	1.77			%	1.66			%	4.48				%
Turkey
U.S. Turkey Sales (000’s)		—				—				—				—				—				—				—				—				—				—				—				—
U.S. Turkey Sales divided by U.S. Turkey Net Pounds Produced		—				—				—				—				—				—				—				—				—				—				—				—
U.S. Turkey Operating Income (000’s)		—				—				—				—				—				—				—				—				—				—				—				—
U.S. Turkey Operating Income as a percent of U.S. Turkey Sales		—				—				—				—				—				—				—				—				—				—				—				—
U.S. Turkey Net Pounds Produced (000’s)		—				—				—				—				—				—				—				—				—				—				—				—
U.S. Summary
U.S. Sales (000’s)**		281,332				281,255				273,363				266,953				278,163				261,375				254,342				259,576				268,161				260,730				242,223				231,538
U.S. Cost of Sales (000’s)		242,313				243,018				234,533				234,667				244,055				241,956				239,915				246,985				253,014				244,820				227,462				210,213
U.S. Gross Margin (000’s)		39,019				38,236				38,830				32,287				34,108				19,419				14,427				12,591				15,147				15,910				14,761				21,325
U.S. Gross Margin as a percent of U.S. Sales		13.87			%	13.59			%	14.20			%	12.09			%	12.26			%	7.43			%	5.67			%	4.85			%	5.65			%	6.10			%	6.09			%	9.21				%
U.S. Selling, General and Administrative Expenses (000’s)		13,399				16,160				17,089				13,545				11,842				10,985				11,323				10,118				4,847				11,288				10,730				10,956
U.S. Selling, General and Administrative Expenses as a percent of U.S Sales		4.76			%	5.75			%	6.25			%	5.07			%	4.26			%	4.20			%	4.45			%	3.90			%	1.81			%	4.33			%	4.43			%	4.73				%
U.S. Operating Income (000’s)		25,619				22,076				21,741				18,741				22,266				8,434				3,104				2,473				10,300				4,622				4,031				10,369
U.S. Operating Income as a percent of U.S. Sales		9.11			%	7.85			%	7.95			%	7.02			%	8.00			%	3.23			%	1.22			%	0.95			%	3.84			%	1.77			%	1.66			%	4.48				%
Mexico
Chicken Operations:
Mexico Chicken Sales (000’s) ©		60,244				57,870				51,805				63,613				55,508				59,945				63,333				78,311				73,113				74,438				61,178				66,268
Mexico Chicken Sales divided by Mexico Chicken Net Pounds Produced		$	0.4746			$	0.5505			$	0.5290			$	0.5022			$	0.6025			$	0.6491			$	0.6253			$	0.6803			$	0.6612			$	0.6916			$	0.5959			$	0.6538
Mexico Other Operations:
Mexico Other Sales (000’s) (c)		5,685				5,035				4,726				5,522				7,040				7,180				6,771				7,823
Mexico Chicken Operating Income (000’s)		3,195				7,136				3,551				7,445				9,178				10,608				8,294				12,898				14,993				8,005				5,630				5,945
Mexico Operating Income as a percent of Mexico Chicken Sales		4.85			%	11.34			%	6.28			%	10.77			%	14.67			%	15.80			%	11.83			%	16.47			%	20.51			%	10.75			%	9.20			%	8.97				%
Mexico Net Pounds Produced (000’s)		126,948				105,117				97,927				126,657				92,135				92,350				101,276				115,118				110,570				107,635				102,663				101,357
Consolidated Operations
Chicken Operations:
Chicken Sales from all Divisions (000’s)		309,425				312,664				288,478				286,461				299,280				288,664				281,601				289,122				306,892				301,549				265,306				259,415
Chicken Sales from all divisions divided by Chicken Net Pounds Produced from all Divisions		$	0.6554			$	0.6897			$	0.6582			$	0.6113			$	0.7416			$	0.7037			$	0.6749			$	0.6633			$	0.6916			$	0.6923			$	0.6793			$	0.6992
Chicken Net Pounds Produced from all Divisions (000’s)		472,089				453,349				438,314				468,588				403,563				410,199				417,224				435,891				443,754				435,563				390,578				371,012
Other Operations:
Other Sales (000’s)©		37,836				31,496				41,416				49,627				41,431				39,836				42,845				48,765				34,382				33,619				38,095				38,391
Totals All Operations:
Total Net Sales (000’s)		347,261				344,160				329,894				336,088				340,711				328,500				324,446				337,887				341,274				335,168				303,401				297,806
Total Cost of Sales (000’s)		301,131				294,745				283,632				292,187				293,586				295,764				297,585				308,507				307,414				307,883				280,316				267,539
Gross Margin from all operations (000’s)		46,131				49,415				46,262				43,900				47,125				32,736				26,861				29,380				33,860				27,285				23,085				30,267
Gross Margin from all operations as a percent of Total Net Sales		13.28			%	14.36			%	14.02			%	13.06			%	13.83			%	9.97			%	8.28			%	8.70			%	9.92			%	8.14			%	7.61			%	10.16				%
Total Selling, General and Administrative Expenses (000’s)		17,316				20,203				20,970				17,715				15,681				13,694				15,463				14,009				8,567				14,658				13,425				13,953
Total Selling, General and Administrative Expenses as a percent of Total Net Sales		4.99			%	5.87			%	6.36			%	5.27			%	4.60			%	4.17			%	4.77			%	4.15			%	2.51			%	4.37			%	4.42			%	4.69				%
Operating Income from all operations (000’s)		28,814				29,212				25,292				26,186				31,444				19,042				11,398				15,371				25,293				12,627				9,660				16,314
Operating Income from all operations as a percent of Total Net Sales		8.30			%	8.49			%	7.67			%	7.79			%	9.23			%	5.80			%	3.51			%	4.55			%	7.41			%	3.77			%	3.18			%	5.48				%
Avian Influenza Reimbursement (000’s)		—				—				—				—				—				—				—				—				—				—				—
Vitamin Settlements (000’s)		—				—				—				—				—				—				—				—				—				—				—				—
Total Adjustments (000’S)		—				—				—				—				—				—				—				—				—				—				—				—
Consolidated Adjusted Chicken and Turkey Operating Income (000’s)		28,814				29,212				25,292				26,186				31,444				19,042				11,398				15,371				25,293				12,627				9,660				16,314
Consolidated Adjusted Chicken and Turkey Income  as a percent of Total Net Sales		8.30			%	8.49			%	7.67			%	7.79			%	9.23			%	5.80			%	3.51			%	4.55			%	7.41			%	3.77			%	3.18			%	5.48				%

 

(a)  The acquisition of WLR Foods has been accounted for as a purchase, and the results of operations for this acquisition have been included in our consolidated results of operations since January 27, 2001,  the acquisition date.

 

(b)  14 week Quarter.

 

(c)  Certain item previously classified under Mexico have been reclassified under sale of other products-Mexico.

Amounts reclassified by quarter were:

$

—

$

—

$

—

$

—

$

—

$

—

$

—

$

—

$

—

$

—

$

—

$

—

 

6