UNITED
STATES
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): January 23, 2006
PILGRIM'S
PRIDE CORPORATION
(Exact
Name of Registrant as Specified in its Charter)
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Delaware
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1-9273
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75-1285071
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(State or Other Jurisdiction
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(Commission
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(IRS
Employer
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of Incorporation)
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File
Number)
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Identification
No.)
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4845 US Hwy. 271 N.
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Pittsburg, Texas
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75686-0093
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(Address of Principal Executive Offices)
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(ZIP
Code)
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Registrant's
telephone number, including area code: (903)
434-1000
Not
Applicable
(Former
Name or Former Address, if Changed Since Last Report)
Check
the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions:
|
q
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Written
communications pursuant to Rule 425 under the Securities Act (17
CFR
230.425)
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q
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Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
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q
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Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17
CFR
240.14d-2(b))
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q
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Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17
CFR
240.13e-4(c)
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Item
2.02. Results
of Operations and Financial Condition.
The
information in this Item 2.02 and the Exhibit attached hereto shall not be
deemed "filed" for purposes of Section 18 of the Securities Exchange Act of
1934, nor shall it be deemed incorporated by reference in any filing under
the
Securities Act of 1933, except as shall be expressly set forth by specific
reference in such filing.
On
January 23, 2006, Pilgrim's Pride Corporation issued a press release reporting
net income of $25.7 million, or $0.39 per share, for the first fiscal quarter
ended December 31, 2005, a decrease of $22.8 million, or $0.34 per share,
compared with net income of $48.5 million, or $0.73 per share, in the first
quarter of fiscal 2005. The Company also reported net sales for the first
quarter of fiscal 2006 of $1.34 billion, a decrease of $0.3 billion, compared
with net sales of $1.37 billion for the same period last year.
The
press
release is furnished as Exhibit 99.1 to this Form 8-K.
Item
9.01. Financial Statements and Exhibits.
(c)
Exhibits
Exhibit
Number Description
99.1
Press Release dated January 23, 2006.
Signatures
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant
has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
PILGRIM'S
PRIDE CORPORATION
Date: January
23, 3006 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 January 23, 2006.
Exhibit
99.1
PILGRIM'S
PRIDE CORPORATION
REPORTS
EARNINGS AND NET SALES
FOR
FIRST QUARTER FISCAL 2006
PITTSBURG,
Texas, Jan. 23, 2006 - Pilgrim's Pride Corporation (NYSE: PPC) today reported
net income of $25.7 million, or $0.39 per share, for the first fiscal quarter
ended December 31, 2005, a decrease of $22.8 million, or $0.34 per share,
compared with net income of $48.5 million, or $0.73 per share, in the first
quarter of fiscal 2005. The Company also reported net sales for the first
quarter of fiscal 2006 of $1.34 billion, a decrease of $0.03 billion, compared
with net sales of $1.37 billion for the same period last year.
“We
delivered a solid performance in the first quarter, resulting in our second
best
first fiscal quarter in our Company’s public history dating back to 1986.
This quarter reflected continued growth in our prepared food business and
stable
input costs as feed ingredient costs have remained in prior year ranges."
said
O.B. Goolsby, President and Chief Executive Officer of Pilgrim's Pride
Corporation. “When compared to the same period last year, our Mexico
operations suffered as the traditional bump we see during the Christmas holiday
season did not live up to typical patterns. Also, higher energy related
costs and lower sales prices, primarily for chicken leg quarters in our U.S.
operations, negatively impacted our performance in the quarter versus the
same
period last year and fourth quarter of fiscal 2005, respectively.” Goolsby
concluded.
Conference
Call Information
A
conference call to discuss the Company's first quarter results will be held
at
10:00 a.m. CST (11:00 a.m. EST) on January 23, 2006. To listen live via
telephone, call 800-391-2548, verbal pass code Pilgrim’s Pride or VG495227. The
call will also be webcast live on the Internet at
http://phx.corporate-ir.net/phoenix.zhtml?p=irol-eventDetails&c=68228&eventID=1189714
(Please copy and paste the link into the browser).
Additionally,
the Company has posted a slide presentation on its website at
http://www.pilgrimspride.com, which may be viewed by listeners in
connection with today’s conference call. 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. CST on January 23 through January 30 at
800-355-2355 pass code 495227#.
Pilgrim's
Pride Corporation is the second-largest chicken producer in the United States
and Mexico and the largest chicken producer in Puerto Rico. Pilgrim's Pride
employs more than 40,000 people and has major operations in Texas, Alabama,
Arkansas, Georgia, Kentucky, Louisiana, North Carolina, Pennsylvania, Tennessee,
Virginia, West Virginia, Mexico and Puerto Rico, with other facilities in
Arizona, California, Florida, Iowa, Mississippi and Utah.
Pilgrim's
Pride products are sold to foodservice, retail and frozen entree customers.
The
Company's primary distribution is through retailers, foodservice distributors
and restaurants throughout the United States and Puerto Rico and in the Northern
and Central regions of Mexico. For more information, please visit
www.pilgrimspride.com.
Foreword-Looking
Statements:
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. 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;
additional outbreaks of avian influenza or other diseases, either in our
own
flocks or elsewhere, affecting our ability to conduct our operations and/or
demand for our 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; changes in laws or regulations
affecting our operations or the application thereof; competitive factors
and
pricing pressures or the loss of one or more of our largest customers; currency
exchange rate fluctuations, trade barriers, exchange controls, expropriation
and
other risks associated with foreign operations; management of our cash
resources, particularly in light of our leverage, and restrictions imposed
by
and as a result of, our leverage; 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.
Pilgrim's Pride Corporation undertakes no obligation to update or revise
publicly any forward-looking statements, whether as a result of new information,
future events or otherwise.
For
further information contact:
Kathy
Costner
Pilgrim's Pride Corporation
(903)
434-1430
PILGRIM'S
PRIDE CORPORATION
News
Release
January
23, 2006
Page
3
PILGRIM'S
PRIDE CORPORATION
Consolidated
Statements of Income
(Unaudited)
[In
thousands, except share and per share amounts]
|
Three
Months Ended
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December
31, 2005
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January
1, 2005
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|||||
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Net
Sales
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$
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1,343,812
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$
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1,368,247
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|||
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Costs
and Expenses
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|||||||
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Cost
of sales
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1,225,412
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1,212,836
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|||||
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Selling,
general and administrative
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72,202
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64,396
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|||||
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1,297,614
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1,277,232
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||||||
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Operating
Income
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46,198
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91,015
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|||||
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Other
Expense (Income):
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|||||||
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Interest
expense, net
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12,394
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12,224
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|||||
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Interest
income
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(3,946
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)
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(943
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)
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|||
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Foreign
exchange (gain)
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(620
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)
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(103
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)
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|||
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Miscellaneous,
net
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1,730
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(1,015
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)
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|||
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Total
other expenses, net
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9,558
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11,106
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|||||
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Income
before income taxes
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36,640
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79,909
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|||||
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Income
tax expense
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10,962
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31,400
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|||||
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Net
Income
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$
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25,678
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$
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48,509
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|||
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Net
income per common share
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|||||||
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-basic
and diluted
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$
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0.39
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$
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0.73
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|||
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Dividends
declared per common share
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$
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1.0225
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$
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0.015
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|||
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Weighted
average shares outstanding
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66,555,733
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66,555,733
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PILGRIM'S
PRIDE CORPORATION
News
Release
January
23, 2006
Page
4
PILGRIM'S
PRIDE CORPORATION
Condensed
Consolidated Balance Sheets
(Unaudited)
[In
thousands]
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December
31, 2005
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October
1, 2005
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||||||
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ASSETS
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|||||||
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Cash
and Cash Equivalents
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$
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170,276
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$
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132,567
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|||
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Other
current assets
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899,958
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866,848
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|||||
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Total
Current Assets
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1,070,234
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999,415
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|||||
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Investments
in Available for Sale Securities
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268,975
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304,593
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|||||
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Other
Assets
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56,948
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53,798
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|||||
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Property,
Plant and Equipment, net
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1,166,962
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1,154,097
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|||||
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Total
Assets
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$
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2,563,119
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$
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2,511,903
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|||
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LIABILITIES
AND STOCKHOLDERS' EQUITY
|
|||||||
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Current
maturities of long-term debt
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$
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8,658
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$
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8,603
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|||
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Other
current liabilities
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689,854
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586,211
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|||||
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Total
Current Liabilities
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698,512
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594,814
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|||||
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Long-Term
Debt, Less Current Maturities
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508,516
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518,863
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|||||
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Deferred
Income Taxes
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173,232
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173,232
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|||||
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Minority
Interest in Subsidiary
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1,729
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1,396
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|||||
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Total
Stockholders' Equity
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1,181,130
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1,223,598
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|||||
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Total
Liabilities and Stockholders’ Equity
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$
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2,563,119
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$
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2,511,903
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|||
PILGRIM'S
PRIDE CORPORATION
News
Release
January
23, 2006
Page
5
Selected
Financial Information
(Unaudited)
(In
thousands)
Note:
“EBITDA” is defined as net income before interest, income taxes, and
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 Generally Accepted
Accounting Principles (GAAP) results, to compare the performance of companies.
EBITDA is not a measurement of financial performance under GAAP 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 GAAP.
EBITDA
is
calculated as follows:
|
Three
Months Ended
|
December
31, 2005
|
January
1, 2005
|
|||||
|
Net
Income
|
$
|
25,678
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$
|
48,509
|
|||
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Add:
|
|||||||
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Income
tax expense
|
10,962
|
31,400
|
|||||
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Interest
expense, net
|
8,448
|
12,224
|
|||||
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Depreciation
and amortization
|
30,348
|
30,065
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|||||
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Minus:
|
|||||||
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Amortization
of capitalized financing costs
|
581
|
570
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|||||
|
EBITDA
|
$
|
74,855
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$
|
121,628
|
|||
|
Capital
expenditures
|
$
|
43,866
|
$
|
24,160
|
|||
|
|
|||||||