form 8_k


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)


Delaware
1-9273
75-1285071
(State or Other Jurisdiction
(Commission
(IRS Employer
of Incorporation)
File Number)
Identification No.)


4845 US Hwy. 271 N.    
 
Pittsburg, Texas
75686-0093
(Address of Principal Executive Offices)
(ZIP Code)


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
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

q
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

q
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

q
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)
 
Item 7.01
Regulation FD Disclosure
 
Attached hereto as Exhibit 99.1 is certain supplemental historical financial information of  Pilgrim’s Pride Corporation.
 
 
 
 
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: Januart 23, 2006 
 
 
 
 
 
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
 
ex99_1

Pilgrim's Pride Corporation
 
Net Sales by Primary Market Line
 
for Quarter Ended:
 
   
The following table sets forth 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.
 
   
Dec 31,
 
(in thousands)
 
 
2005
 
Chicken Sales:
       
United States
       
Prepared Foods:
       
Foodservice
 
$
386,169
 
Retail
 
$
73,196
 
Total Prepared Foods
 
$
459,366
 
         
Fresh Chicken:
       
Foodservice
 
$
351,981
 
Retail
 
$
128,148
 
Total Fresh Chicken
 
$
480,129
 
Export and Other
       
Export:
       
Prepared Foods
 
$
16,665
 
Chicken
 
$
73,821
 
Total Export (d)
 
$
90,486
 
Other Chicken By Products
 
$
4,185
 
Total Export and Other
 
$
94,671
 
Total U.S. Chicken
 
$
1,034,166
 
         
Mexico:
 
$
92,403
 
Total Chicken Sales
 
$
1,126,569
 
         
Total Prepared Foods
   
476,031
 
         
Turkey Sales:
       
Prepared Foods:
       
Foodservice
 
$
13,392
 
Retail
 
$
7,939
 
Total Prepared Foods
 
$
21,331
 
         
Fresh Turkey:
       
Foodservice
 
$
2,468
 
Retail
 
$
37,621
 
Total Fresh Turkey
 
$
40,089
 
Export and Other
       
Export:
       
Prepared Foods
 
$
59
 
Turkey
 
$
143
 
Total Export
 
$
202
 
Other Turkey By Products
 
$
282
 
Total Export and Other
 
$
484
 
Total Turkey Sales
 
$
61,904
 
         
Total Prepared Foods
 
$
21,391
 
         
Sale of Other Products
       
U.S.
 
$
153,529
 
Mexico 
 
$
1,809
 
Total Other Products
 
$
155,339
 
Total Net Sales
 
$
1,343,812
 

 


   
Dec 31,
 
 
 
 
2005
 
 
 
 
   
Chicken Sales:
       
U.S. Chicken Sales:
       
Prepared Foods:
       
Foodservice
   
37.4
%
Retail
   
7.1
%
Total Prepared Foods
   
44.5
%
         
Fresh Chicken:
       
Foodservice
   
34.0
%
Retail
   
12.4
%
Total Fresh Chicken
   
46.4
%
Export and Other
       
Export:
       
Prepared Foods
   
1.6
%
Chicken
   
7.1
%
Total Export
   
8.7
%
Other Chicken By Products
   
0.4
%
Total Export and Other
   
9.1
%
Total U.S. Chicken
   
100.0
%
         
         
         
Turkey Sales:
       
U.S. Turkey Sales:
       
Prepared Foods:
       
Foodservice
   
22.1
%
Retail
   
12.8
%
Total Prepared Foods
   
34.9
%
         
Fresh Turkey:
       
Foodservice
   
4.0
%
Retail
   
60.8
%
Total Fresh Turkey
   
64.8
%
Export and Other
       
Export:
       
Prepared Foods
   
0.1
%
Turkey
   
0.2
%
Total Export
   
0.3
%
Other Turkey By Products
   
0.5
%
Total Export and Other
   
0.8
%
Total U.S. Turkey
   
100.0
%
 
 

 

 
Pilgrim's Pride Corporation
Selected Financial Data
for quarter 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.
 

 
(In thousands except for per share data)
   
12/31/05
 
Income Statement Data:
       
Net sales
 
$
1,343,812
 
Non-recurring recoveries
   
-
 
Gross margin
   
118,400
 
Selling, general and administrative expenses
   
72,202
 
Operating income (loss)
   
46,198
 
Interest expense, net
   
8,448
 
Miscellaneous, net
   
1,110
 
Income (loss) before income taxes and extraordinary charge
   
36,640
 
Income tax expense (benefit)
   
10,962
 
Income (loss) before extraordinary charge
   
25,678
 
Extraordinary charge - net of tax
   
-
 
Net income (loss)
 
$
25,678
 
         
Per Common Share Data:
       
Income (loss) before extraordinary charge
 
$
0.39
 
Extraordinary charge - early repayment of debt
   
-
 
Net Income (loss)
 
$
0.39
 
Cash dividends
 
$
1.023
 
Book value
 
$
17.67
 
         
Balance Sheet Summary:
       
Working capital
 
$
371,722
 
Total assets
 
$
2,563,119
 
Notes payable and current maturities of long-term debt
 
$
8,658
 
Long-term debt, less current maturities
 
$
508,516
 
Total debt
 
$
517,174
 
Senior secured debt (included in Total Debt)
 
$
-
 
Total stockholders' equity
 
$
1,181,130
 
         
Cash Flow Summary:
       
Operating cash flow
 
$
59,195
 
Depreciation & amortization
 
$
30,348
 
Capital expenditures
 
$
43,866
 
Business acquisitions
 
$
-
 
Financing activities, net
 
$
(11,791
)
         
Cashflow Ratios:
       
EBITDA (b)
 
$
74,855
 
EBITDA (last four qtrs.)
 
$
533,305
 
         
Key Indicators (as a percentage of net sales):
       
Gross margin
   
8.8
%
Selling, general and adminstrative expenses
   
5.4
%
Operating income (loss)
   
3.4
%
Interest expense, net
   
0.6
%
Net income (loss)
   
1.9
%
 

(a) Includes amortization of capitalized financing costs of approximately
 
$
581
 

 
(b) “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
 
$
25,678
 
Add:
       
Extraordinary charge-net of tax
   
-
 
Income Tax Expense (benefit)
   
10,962
 
Interest expense, net
   
8,448
 
Depreciation and amortization
   
30,348
 
Minus:
       
Amortization of capitalized financing costs
   
581
 
EBITDA
 
$
74,855
 
 

 

 
Pilgrim's Pride Corporation
 
Sales Segments
 
for Quarters Ended:
 
   
   
 
 
Our chicken segment and our sales of other product segment include sales of products that we produce and purchase for resale in the United States and Mexico. Both of these segments conduct separate operations in the United States and Mexico and are reported as two seprarate geographical areas. Our turkey segment includes sales of turkey products produced and purchased for resale. Our turkey operations are exclusively in the United States.
 
Inter-area sales and inter-segment sales, which are not material, are accounted for at prices comparable to normal trade customer sales. Fixed assets by segment and geographic area are those assets which are used in our operations in each segment or area. Corporate assets are included with chicken and other products. 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.
 
 

(In thousands)
   
12/31/2005
 
 
1/1/2005
 
Net Sales to Customers:
             
Chicken:
             
United States 
 
$
1,034,166
 
$
1,034,838
 
Mexico 
   
92,403
   
96,937
 
 Sub-total
   
1,126,569
   
1,131,775
 
Turkey
   
61,904
   
79,774
 
Other Products:
             
United States 
   
153,530
   
155,047
 
Mexico 
   
1,809
   
1,651
 
 Sub-total
   
155,339
   
156,698
 
 Total
 
$
1,343,812
 
$
1,368,247
 
               
Operating Income:
             
Chicken:
             
United States 
 
$
53,862
 
$
88,607
 
Mexico 
   
(7,070
)
 
5,182
 
 Sub-total
   
46,792
   
93,789
 
Turkey
   
(5,642
)
 
(4,765
)
Other Products
             
United States 
   
4,590
   
1,549
 
Mexico 
   
458
   
442
 
 Sub-total
   
5,048
   
1,991
 
Non-recurring recoveries 
   
-
   
-
 
 Total
 
$
46,198
 
$
91,015
 
               
Depreciation and Amortization: (f)
             
Chicken:
             
United States 
 
$
25,350
 
$
24,806
 
Mexico 
   
2,629
   
3,086
 
 Sub-total
   
27,979
   
27,892
 
Turkey
   
781
   
767
 
Other Products
             
United States 
   
1,552
   
1,359
 
Mexico 
   
36
   
47
 
 Sub-total
   
1,588
   
1,406
 
 Total
 
$
30,348
 
$
30,065
 
               
Total Assets:
             
Chicken:
             
United States 
 
$
2,102,873
 
$
1,823,853
 
Mexico 
   
293,662
   
260,026
 
 Sub-total
   
2,396,535
   
2,083,879
 
Turkey
   
67,088
   
105,692
 
Other Products
             
United States 
   
97,454
   
87,724
 
Mexico 
   
2,042
   
2,541
 
 Sub-total
   
99,496
   
90,265
 
 Total
 
$
2,563,119
 
$
2,279,836
 
               
Capital Expenditures:
             
Chicken:
             
United States 
 
$
40,021
 
$
19,033
 
Mexico 
   
2,587
 
$
1,387
 
 Sub-total
   
42,608
   
20,420
 
Turkey
   
50
 
$
2,820
 
Other Products
             
United States 
   
1,129
   
884
 
Mexico 
   
79
   
36
 
 Sub-total
   
1,208
   
920
 
 Total
 
$
43,866
 
$
24,160
 

 
(a) Includes amortization of capitalized financing costs of approximately
 
$
581
 
$
570
 
 

 
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.
 
 

($ in thousands )
             
 
 
 
12/31/05 
   
01/01/05
 
U.S. Chicken
             
               
U.S. Chicken Sales (000's)
 
$
1,034,166
 
$
1,034,838
 
U.S. Chicken Sales divided by U.S.Chicken Net Pounds Produced
 
$
0.7360
 
$
0.7699
 
U.S. Chicken Sales divided by U.S.Chicken Pounds Sold
 
$
0.8563
 
$
0.8389
 
               
U.S. Chicken Net Pounds Produced (000's)
   
1,405,025
   
1,344,192
 
U.S. Chicken Pounds Sold (000's)
   
1,207,685
   
1,233,550
 
               
U.S. Chicken Operating Income (000's) (g)
   
53,862
   
88,607
 
U.S. Chicken Operating Income as a percent of U.S. Chicken Sales
   
5.21
%
 
8.56
%
               
Turkey
             
               
U.S. Turkey Sales (000's)
   
61,904
   
79,774
 
U.S. Turkey Sales divided by U.S. Turkey Net Pounds Produced
 
$
1.6289
 
$
2.0612
 
U.S. Turkey Sales divided by U.S. Turkey Pounds Sold
 
$
0.9433
 
$
0.9822
 
               
U.S. Turkey Operating Income (000's)
   
(5,642
)
 
(4,765
)
U.S. Turkey Operating Income as a percent of U.S. Turkey Sales
   
-9.11
%
 
-5.97
%
               
U.S. Turkey Net Pounds Produced (000's)
   
38,003
   
38,702
 
U.S. Turkey Pounds Sold (000's)
   
65,626
   
81,216
 
               
               
U.S. Other
             
               
U.S. Other Sales
   
153,530
   
155,047
 
               
U.S. Other Operating Income (g)
   
4,590
   
1,549
 
U.S. Distribution and Other Operating Income as a percent of U.S. Distribution Sales
   
3.0
%
 
1.0
%
               
U.S. Summary
             
               
U.S. Sales (000's)
   
1,249,600
   
1,269,659
 
U.S. Cost of Sales (000's)
   
1,132,533
   
1,120,286
 
U.S. Gross Margin (000's)
   
117,067
   
149,373
 
U.S. Gross Margin as a percent of U.S. Sales
   
9.37
%
 
11.76
%
               
U.S. Selling, General and Administrative Expenses (000's)
   
64,257
   
63,982
 
U.S. Selling, General and Administrative Expenses as a percent of U.S Sales
   
5.14
%
 
5.04
%
               
Restructuring and Related Charges - Turkey
   
-
   
-
 
Insurance Proceeds - Turkey
   
-
   
-
 
Vitamin Settlements (000's)
   
-
   
-
 
               
U.S. Operating Income (000's)
   
52,810
   
85,391
 
U.S. Operating Income as a percent of U.S. Sales
   
4.23
%
 
6.73
%
               
Mexico Chicken
             
               
Mexico Chicken Sales (000's)
   
92,403
   
96,937
 
Mexico Chicken Sales divided by Mexico Chicken Net Pounds Produced
 
$
0.5280
 
$
0.6073
 
               
Mexico Net Pounds Produced (000's)
   
175,003
   
159,615
 
               
Mexico Other
             
               
Mexico Other Sales (000's)
   
1,809
   
1,651
 
               
Mexico Summary
             
               
Mexico Sales (000's)
   
94,212
   
98,588
 
Mexico Cost of Sales (000's)
   
92,879
   
86,843
 
Mexico Gross Margin (000's)
   
1,333
   
11,745
 
Mexico Gross Margin as a percent of Mexico Sales
   
1.4
%
 
11.9
%
               
Mexico Selling, General and Administrative Expenses (000's)
   
7,945
   
6,121
 
Mexico Selling, General and Administrative Expenses as a percent of Mexico Sales
   
8.4
%
 
6.2
%
               
Mexico Operating Income (000's)
   
(6,612
)
 
5,624
 
Mexico Operating Income as a percent of Mexico Sales
   
-7.0
%
 
5.7
%
               
Consolidated Operations
             
Chicken Operations:
             
Chicken Sales from all Divisions (000's)
   
1,126,569
   
1,131,775
 
Chicken Sales from all divisions divided by Chicken Net Pounds Produced from all Divisions
 
$
0.7130
 
$
0.7526
 
Chicken Sales from all divisions divided by Chicken Pounds Sold from all Divisions
 
$
0.8148
 
$
0.8124
 
               
Chicken Net Pounds Produced from all Divisions (000's)
   
1,580,028
   
1,503,807
 
Chicken Pounds Sold from all Divisions (000's)
   
1,382,688
   
1,393,165
 
               
               
Turkey Operations:
             
U.S. Turkey Sales (000's)
   
61,904
   
79,774
 
U.S. Turkey Sales divided by U.S. Turkey Net Pounds Produced
 
$
1.6289
 
$
2.0612
 
U.S. Turkey Sales divided by U.S. Turkey Pounds Sold
 
$
0.9433
 
$
0.9822
 
               
U.S. Turkey Net Pounds Produced (000's)
   
38,003
   
38,702
 
U.S. Turkey Pounds Sold (000's)
   
65,626
   
81,216
 
               
               
Other Operations:
             
Other Sales (000's)
   
155,339
   
156,698
 
               
               
Totals All Operations:
             
Total Net Sales (000's)
   
1,343,812
   
1,368,247
 
Total Cost of Sales (000's)
   
1,225,412
   
1,207,129
 
Gross Margin from all operations (000's)
   
118,400
   
161,118
 
Gross Margin from all operations as a percent of Total Net Sales
   
8.81
%
 
11.78
%
               
Total Selling, General and Administrative Expenses (000's)
   
72,202
   
70,103
 
Total Selling, General and Administrative Expenses as a percent of Total Net Sales
   
5.37
%
 
5.12
%
               
Restructuring and Related Charges - Turkey
   
-
   
-
 
Insurance Proceeds - Turkey
   
-
   
-
 
               
Operating Income from all operations (000's)
   
46,198
   
91,015
 
Operating Income from all operations as a percent of Total Net Sales
   
3.44
%
 
6.65
%
               
Avian Influenza Reimbursement (000's)
   
-
   
-
 
Vitamin Settlements (000's)
   
-
   
-
 
Total Adjustments (000'S)
   
-
   
-
 
               
Consolidated Adjusted Operating Income (000's)
   
46,198
   
91,015
 
Consolidated Adjusted Operating Income as a percent of Total Net Sales
   
3.44
%
 
6.65
%