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Form 8k

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): July 26, 2004
 
 
 
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.)
 
 
 
 
110 South Texas Street
Pittsburg, Texas
 
75686-0093
(Address of Principal Executive Offices)
 
(ZIP Code)
 
Registrant’s telephone number, including area code: (903) 855-1000
 
 
 
Item 9.
Regulation FD Disclosure
 
Attached hereto as Exhibit 99.1 is certain supplemental historical financial information of  Pilgrim’s Pride Corporation, including quarterly information regarding net sales by primary market line.
 
 
 
 
 
Exhibit
Number
  
 
Description
 
 
99.1
  
Supplemental Historical Financial Information
 
Signature
 
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: July 26, 2004.
 
 
 
 
 
By:
 
/s/    Richard A. Cogdill
 
 
 
 
Richard A. Cogdill
Executive Vice President, Chief Financial Officer,
Secretary and Treasurer
 
Exhibit Index
 
 
 
 
Exhibit
Number
 
  
Description
 
 
 
99.1
  
Supplemental Historical Financial Information

Exhibit 99.1 Supplemental Info

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.
 

 
July 3,
 
2004
Chicken Sales:
 
United States
 
Prepared Foods:
 
Foodservice
$461,530
Retail
$48,583
Total Prepared Foods
$510,113
 
 
Fresh Chicken:
 
Foodservice
$366,076
Retail
$181,258
Total Fresh Chicken
$547,335
Export and Other
 
Prepared Foods
$8,285
Chicken-Other
$55,341
Total Export and Other
$63,627
Total U.S. Chicken
$1,121,074
 
 
Mexico:
$90,718
Total Chicken Sales
$1,211,792
 
 
Total Prepared Foods
518,398
 
 
Turkey Sales:
 
Prepared Foods:
 
Foodservice
$18,936
Retail
$11,489
Total Prepared Foods
$30,425
 
 
Fresh Turkey:
 
Foodservice
$9,259
Retail
$24,249
Total Fresh Turkey
$33,508
Export and Other
 
Prepared Foods
$467
Turkey-Other
$1,886
Total Export and Other
$2,353
 
 
Total Turkey Sales
$66,286
 
 
Total Prepared Foods
$30,892
 
 
Sale of Other Products
 
U.S.
$163,666
Mexico
$6,251
Total Other Products
$169,917
Total Net Sales
$1,447,995
 
 
 
July 3,
 
2004
Chicken Sales:
 
U.S. Chicken Sales:
 
Prepared Foods:
 
Foodservice
41.2%
Retail
4.3%
Total Prepared Foods
45.5%
 
 
Fresh Chicken:
 
Foodservice
32.7%
Retail
16.2%
Total Fresh Chicken
48.9%
Export and Other
 
Prepared Foods
0.7%
Chicken-Other
4.9%
Total Export and Other
5.6%
Total U.S. Chicken
100.0%
 
 
Turkey Sales:
 
U.S. Turkey Sales:
 
Prepared Foods:
 
Foodservice
28.6%
Retail
17.3%
Total Prepared Foods
45.9%
 
 
Fresh Turkey:
 
Foodservice
14.0%
Retail
36.6%
Total Fresh Turkey
50.6%
Export and Other
 
Prepared Foods
0.7%
Turkey-Other
2.8%
Total Export and Other
3.5%
Total U.S. Turkey
100.0%
 
 
 
 
 
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.

 

 
07/03/04
Income Statement Data:
 
Net sales
$ 1,447,995
Non-recurring recoveries
-
Gross margin
167,527
Selling, general and administrative expenses
78,208
Operating income (loss)
37,117
Interest expense, net
14,690
Miscellaneous, net
350
Income (loss) before income taxes and extraordinary charge
22,077
Income tax expense (benefit)
12,263
Income (loss) before extraordinary charge
9,814
Extraordinary charge - net of tax
-
Net income (loss)
$ 9,814
 
 
Per Common Share Data:
 
Income (loss) before extraordinary charge
$ 0.15
Extraordinary charge - early repayment of debt
-
Net Income (loss)
$ 0.15
Cash dividends
$ 0.015
Book value
$ 12.77
 
 
Balance Sheet Summary:
 
Working capital
$ 333,403
Total assets
$ 2,134,229
Notes payable and current maturities of long-term debt
$ 8,175
Long-term debt, less current maturities
$ 591,297
Total debt
$ 599,472
Senior secured debt (included in Total Debt)
$ 299,472
Total stockholders' equity
$ 849,862
 
 
Cash Flow Summary:
 
Operating cash flow
$ 66,178
Depreciation & amortization (b)
$ 27,936
Capital expenditures
$ 19,922
Business acquisitions
$ 538
Financing activities, net
$ (57,155)
 
 
Cashflow Ratios:
 
EBITDA (c)
$ 64,294
EBITDA (last four qtrs.)
$ 258,997
 
 
Key Indicators (as a percentage of net sales):
 
Gross margin
11.6%
Selling, general and administrative expenses
5.4%
Operating income (loss)
2.6%
Interest expense, net
1.0%
Net income (loss)
0.7%

(a) Includes Turkey Restructuring Provision of $52.2 million for the three months ended July 3, 2004.

(b) Includes amortization of capitalized financing costs of approximately
$ 409

(c) “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
$ 9,814
Add:
 
Extraordinary charge-net of tax
-
Income Tax Expense (benefit)
12,263
Interest expense, net
14,690
Depreciation and amortization
27,936
Minus:
 
Amortization of capitalized financing costs
409
EBITDA
$64,294

 

 
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.

 
7/3/2004(a)
United States
 
Chicken Operations:
 
U.S. Chicken Sales (000's)
$ 1,121,073
U.S. Chicken Sales divided by U.S.Chicken Net Pounds Produced
$0.8421
 
 
U.S. Chicken Net Pounds Produced (000's)
1,331,322
 
 
Other Operations:
 
Other Sales (000's)
163,666
 
 
U.S. Chicken Sales & Other Sales Totals:
 
U.S. Chicken Sales & Other Sales (000's)
1,284,739
 
 
U.S. Chicken & Other Operating Income (000's)
109,952
U.S. Chicken & Other Operating Income as a percent of U.S. Chicken & Other Sales
8.56%
 
 
 
 
Turkey
 
 
 
U.S. Turkey Sales (000's)
66,286
U.S. Turkey Sales divided by U.S. Turkey Net Pounds Produced
$0.7293
 
 
U.S. Turkey Operating Income (000's)
(71,143)
U.S. Turkey Operating Income as a percent of U.S. Turkey Sales
-107.33%
 
 
U.S. Turkey Net Pounds Produced (000's)
90,889
 
 
U.S. Summary
 
 
 
U.S. Sales (000's)
1,351,025
U.S. Cost of Sales (000's)
1,188,106
U.S. Gross Margin (000's)
162,919
U.S. Gross Margin as a percent of U.S. Sales
12.06%
 
 
U.S. Selling, General and Administrative Expenses (000's)
71,908
U.S. Selling, General and Administrative Expenses as a percent of U.S Sales
5.32%
 
 
Restructuring Provision - Turkey
52,202
 
 
U.S. Operating Income (000's)
38,809
U.S. Operating Income as a percent of U.S. Sales
2.87%
 
 
Mexico
 
Chicken Operations:
 
Mexico Chicken Sales (000's)
90,718
Mexico Chicken Sales divided by Mexico Chicken Net Pounds Produced
$0.5851
 
 
Mexico Other Operations:
 
Mexico Other Sales (000's)
6,251
 
 
Mexico Chicken and Other Operating Income (000's)
(1,692)
Mexico Operating Income as a percent of Mexico Sales
-1.74%
 
 
Mexico Net Pounds Produced (000's)
155,038
 
 
Consolidated Operations
 
Chicken Operations:
 
Chicken Sales from all Divisions (000's)
1,211,791
Chicken Sales from all divisions divided by Chicken Net Pounds Produced from all Divisions
$0.8153
 
 
Chicken Net Pounds Produced from all Divisions (000's)
1,486,360
 
 
Other Operations:
 
Other Sales (000's)
169,917
 
 
Totals All Operations:
 
Total Net Sales (000's)
1,447,994
Total Cost of Sales (000's)
1,280,466
Gross Margin from all operations (000's)
167,528
Gross Margin from all operations as a percent of Total Net Sales
11.57%
 
 
Total Selling, General and Administrative Expenses (000's)
78,209
Total Selling, General and Administrative Expenses as a percent of Total Net Sales
5.40%
 
 
Restructuring Provision - Turkey
52,202
 
 
Operating Income from all operations (000's)
37,117
Operating Income from all operations as a percent of Total Net Sales
2.56%
 
 
Avian Influenza Reimbursement (000's)
-
Vitamin Settlements (000's)
-
Total Adjustments (000'S)
-
 
 
Consolidated Adjusted Chicken and Turkey Operating Income (000's)
37,117
Consolidated Adjusted Chicken and Turkey Income as a percent of Total Net Sales
2.56%
 
 

(a) The acquisition of the Conagra Chicken Division 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 November 23, 2003, the acquisition date. These results include net sales of $546.2 million and $81.5 million of Chicken Products and Other Products, respectively, and production of 669.9 million pounds of chicken products.

 
Pilgrim's Pride Corporation
Proforma 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.

 
09/27/03
 
06/28/03
 
03/29/03
 
12/28/02
United States
 
 
 
 
 
 
 
Chicken Operations:
 
 
 
 
 
 
 
U.S. Chicken Sales (000's)
$ 979,178
 
$ 898,102
 
$ 849,090
 
$ 836,773
U.S. Chicken Sales divided by U.S.Chicken Net Pounds Produced
$0.7289
 
$0.6873
 
$0.6826
 
$0.6670
 
 
 
 
 
 
 
 
U.S. Chicken Net Pounds Produced (000's)
1,343,288
 
1,306,716
 
1,243,827
 
1,254,466
 
 
 
 
 
 
 
 
Other Operations:
 
 
 
 
 
 
 
Other Sales (000's)
175,042
 
186,929
 
173,857
 
195,638
 
 
 
 
 
 
 
 
U.S. Chicken Sales & Other Sales Totals:
 
 
 
 
 
 
 
U.S. Chicken Sales & Other Sales (000's)
1,154,220
 
1,085,031
 
1,022,947
 
1,032,411
 
 
 
 
 
 
 
 
U.S. Chicken & Other Operating Income (000's)
41,664
 
19,514
 
(16,120)
 
50,850
U.S. Chicken & Other Operating Income as a percent of U.S. Chicken & Other Sales
3.61%
 
1.80%
 
-1.58%
 
4.93%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Turkey
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Turkey Sales (000's)
76,603
 
72,289
 
62,407
 
94,379
U.S. Turkey Sales divided by U.S. Turkey Net Pounds Produced
$0.7753
 
$0.6617
 
$0.5672
 
$0.9047
 
 
 
 
 
 
 
 
U.S. Turkey Operating Income (000's)
(23,669)
 
(19,726)
 
(15,403)
 
(14,268)
U.S. Turkey Operating Income as a percent of U.S. Turkey Sales
-30.90%
 
-27.29%
 
-24.68%
 
-15.12%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Turkey Net Pounds Produced (000's)
98,806
 
109,252
 
110,024
 
104,321
 
 
 
 
 
 
 
 
U.S. Summary
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
U.S. Sales (000's)
1,230,823
 
1,157,320
 
1,085,354
 
1,126,790
U.S. Cost of Sales (000's)
580,392
 
522,326
 
1,075,289
 
1,078,189
U.S. Gross Margin (000's)
650,431
 
634,994
 
10,065
 
48,601
U.S. Gross Margin as a percent of U.S. Sales
52.85%
 
54.87%
 
0.93%
 
4.31%
 
 
 
 
 
 
 
 
U.S. Selling, General and Administrative Expenses (000's)
24,447
 
28,622
 
51,290
 
45,830
U.S. Selling, General and Administrative Expenses as a percent of U.S Sales
1.99%
 
2.47%
 
4.73%
 
4.07%
 
 
 
 
 
 
 
 
U.S. Operating Income (000's)
625,984
 
606,372
 
(41,225)
 
2,771
U.S. Operating Income as a percent of U.S. Sales
50.86%
 
52.39%
 
-3.80%
 
0.25%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Mexico
 
 
 
 
 
 
 
Chicken Operations:
 
 
 
 
 
 
 
Mexico Chicken Sales (000's)
82,366
 
88,600
 
90,247
 
88,092
Mexico Chicken Sales divided by Mexico Chicken Net Pounds Produced
$0.5331
 
$0.6175
 
$0.5759
 
$0.5898
 
 
 
 
 
 
 
 
Mexico Other Operations:
 
 
 
 
 
 
 
Mexico Other Sales (000's)
4,424
 
5,321
 
2,644
 
6,377
 
 
 
 
 
 
 
 
Mexico Chicken and Other Operating Income (000's)
(2,597)
 
8,830
 
3,872
 
6,214
Mexico Operating Income as a percent of Mexico Sales
-2.99%
 
9.40%
 
4.17%
 
6.58%
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Mexico Net Pounds Produced (000's)
154,518
 
143,474
 
156,717
 
149,356
 
 
 
 
 
 
 
 
Consolidated Operations
 
 
 
 
 
 
 
Chicken Operations:
 
 
 
 
 
 
 
Chicken Sales from all Divisions (000's)
1,061,544
 
986,702
 
939,337
 
924,865
Chicken Sales from all divisions divided by Chicken Net Pounds Produced from all Divisions
$0.7087
 
$0.6804
 
$0.6707
 
$0.6588
 
 
 
 
 
 
 
 
Chicken Net Pounds Produced from all Divisions (000's)
1,497,806
 
1,450,190
 
1,400,544
 
1,403,822
 
 
 
 
 
 
 
 
Other Operations:
 
 
 
 
 
 
 
Other Sales (000's)
179,466
 
192,250
 
176,501
 
202,015
 
 
 
 
 
 
 
 
Totals All Operations:
 
 
 
 
 
 
 
Total Net Sales (000's)
1,317,613
 
1,251,241
 
1,178,245
 
1,221,259
Total Cost of Sales (000's)
1,244,716
 
1,189,863
 
1,157,917
 
1,143,216
Gross Margin from all operations (000's)
72,897
 
61,378
 
20,328
 
78,043
Gross Margin from all operations as a percent of Total Net Sales
5.53%
 
4.91%
 
1.73%
 
6.39%
 
 
 
 
 
 
 
 
Total Selling, General and Administrative Expenses (000's)
57,498
 
52,760
 
57,681
 
58,228
Total Selling, General and Administrative Expenses as a percent of Total Net Sales
4.36%
 
4.22%
 
4.90%
 
4.77%
 
 
 
 
 
 
 
 
Operating Income from all operations (000's)
15,399
 
8,618
 
(37,353)
 
19,815
Operating Income from all operations as a percent of Total Net Sales
1.17%
 
0.69%
 
-3.17%
 
1.62%
 
 
 
 
 
 
 
 
Avian Influenza Reimbursement (000's)
10,434
 
67
 
1,749
 
14,301
Vitamin Settlements (000's)
43
 
10,235
 
9,564
 
86
Total Adjustments (000'S)
10,477
 
10,302
 
11,313
 
14,387
 
 
 
 
 
 
 
 
Consolidated Adjusted Chicken and Turkey Operating Income (000's)
25,876
 
18,920
 
(26,040)
 
34,202
Consolidated Adjusted Chicken and Turkey Income as a percent of Total Net Sales
1.96%
 
1.51%
 
-2.21%
 
2.80%