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): August 1, 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: August 1, 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.
 
 
   
July 1,
   
July 2,
 
(in thousands)
   
2006
   
2005
 
               
Chicken Sales:
             
United States
             
Prepared Foods:
             
Foodservice
 
$
390,845
 
$
403,635
 
Retail
 
$
83,235
 
$
76,085
 
Total Prepared Foods
 
$
474,080
 
$
479,719
 
               
Fresh Chicken:
             
Foodservice
 
$
345,131
 
$
395,280
 
Retail
 
$
122,912
 
$
154,399
 
Total Fresh Chicken
 
$
468,043
 
$
549,679
 
Export and Other
             
Export:
             
Prepared Foods
 
$
16,314
 
$
15,101
 
Chicken
 
$
58,457
 
$
81,197
 
Total Export (a)
 
$
74,772
 
$
96,298
 
Other Chicken By Products
 
$
3,024
 
$
7,746
 
Total Export and Other
 
$
77,795
 
$
104,044
 
Total U.S. Chicken
 
$
1,019,918
 
$
1,133,442
 
               
Mexico:
 
$
106,996
 
$
114,377
 
Total Chicken Sales
 
$
1,126,915
 
$
1,247,819
 
               
Total Prepared Foods
   
490,394
   
494,820
 
               
Turkey Sales:
             
Prepared Foods:
             
Foodservice
 
$
823
 
$
10,649
 
Retail
 
$
187
 
$
9,744
 
Total Prepared Foods
 
$
1,011
 
$
20,393
 
               
Fresh Turkey:
             
Foodservice
 
$
1,559
 
$
1,679
 
Retail
 
$
11,988
 
$
13,448
 
Total Fresh Turkey
 
$
13,547
 
$
15,127
 
Export and Other
             
Export:
             
Prepared Foods
 
$
26
 
$
245
 
Turkey
 
$
995
 
$
1,167
 
Total Export (a)
 
$
1,021
 
$
1,412
 
Other Turkey By Products
 
$
174
 
$
605
 
Total Export and Other
 
$
1,194
 
$
2,017
 
Total Turkey Sales
 
$
15,752
 
$
37,538
 
               
Total Prepared Foods
 
$
1,037
 
$
20,638
 
               
Sale of Other Products
             
U.S.
 
$
137,997
 
$
148,939
 
Mexico
 
$
6,982
 
$
5,743
 
Total Other Products
 
$
144,979
 
$
154,682
 
Total Net Sales
 
$
1,287,646
 
$
1,440,039
 
 
 

 
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.
 
 
   
07/01/06
   
07/02/05
 
(in thousands except per share data)
             
Income Statement Data:
             
Net sales
 
$
1,287,646
 
$
1,440,039
 
Non-recurring recoveries
   
-
   
-
 
Turkey restructuring and related charges
         
-
 
Gross margin
   
42,695
   
219,221
 
Selling, general and administrative expenses
   
69,433
   
83,227
 
Operating income (loss)
   
(26,737
)
 
135,993
 
Interest expense, net
   
11,468
   
12,322
 
Miscellaneous, net
   
(231
)
 
88
 
Income (loss) before income taxes and extraordinary charge
   
(37,974
)
 
123,677
 
Income tax expense (benefit)
   
(17,501
)
 
38,324
 
Income (loss) before extraordinary charge
   
(20,473
)
 
85,353
 
Extraordinary charge - net of tax
   
-
   
-
 
Net income (loss)
 
$
(20,473
)
$
85,353
 
               
Per Common Share Data: (b)
             
Income (loss) before extraordinary charge
 
$
(0.31
)
$
1.28
 
Extraordinary charge - early repayment of debt
   
-
   
-
 
Net Income (loss)
 
$
(0.31
)
$
1.28
 
Cash dividends
 
$
0.023
 
$
0.015
 
Book value
 
$
16.83
 
$
16.69
 
               
Balance Sheet Summary:
             
Working capital
 
$
438,856
 
$
568,947
 
Total assets
 
$
2,335,571
 
$
2,402,850
 
Notes payable and current maturities of long-term debt
 
$
7,768
 
$
8,552
 
Long-term debt, less current maturities
 
$
484,970
 
$
521,087
 
Total debt
 
$
492,738
 
$
529,639
 
Senior secured debt (included in Total Debt)
 
$
-
 
$
-
 
Total stockholders' equity
 
$
1,124,861
 
$
1,110,628
 
               
Cash Flow Summary:
             
Operating cash flow
 
$
8,558
 
$
190,088
 
Depreciation & amortization (c)
 
$
34,960
 
$
30,421
 
Capital expenditures
 
$
26,794
 
$
37,994
 
Business acquisitions
 
$
-
 
$
-
 
Financing activities, net
 
$
(3,875
)
$
(3,264
)
               
Cashflow Ratios:
             
EBITDA (d)
 
$
7,977
 
$
165,830
 
EBITDA (last four qtrs.)
 
$
239,068
 
$
578,571
 
               
Key Indicators (as a percentage of net sales):
             
Gross margin
   
3.3
%
 
15.2
%
Selling, general and adminsitrative expenses
   
5.4
%
 
5.8
%
Opertaing income (loss)
   
-2.1
%
 
9.4
%
Interest expense, net
   
0.9
%
 
0.9
%
Net income (loss)
   
-1.6
%
 
5.9
%
 
(a) Includes amortization of capitalized financing costs of approximately
   
477
   
590
 
 
(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
 
$
(20,473
)
$
85,353
 
Add:
             
Extraordinary charge-net of tax
   
-
   
-
 
Income Tax Expense (benefit)
   
(17,501
)
 
38,324
 
Interest expense, net
   
11,468
   
12,322
 
Depreciation and amortization
   
34,960
   
30,421
 
Minus:
             
Amortization of capitalized financing costs
   
477
   
590
 
EBITDA
 
$
7,977
 
$
165,830
 
 

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)
   
7/1/2006
   
7/2/2005
 
Net Sales to Customers:
             
Chicken:
             
United States
 
$
1,019,918
 
$
1,123,096
 
Mexico
   
106,996
   
114,377
 
Sub-total 
   
1,126,914
   
1,237,473
 
Turkey
   
15,753
   
37,538
 
Other Products:
             
United States
   
137,997
   
159,285
 
Mexico
   
6,982
   
5,743
 
Sub-total 
   
144,979
   
165,028
 
Total 
 
$
1,287,646
 
$
1,440,039
 
               
Operating Income:
             
Chicken:
             
United States
 
$
(20,158
)
$
121,214
 
Mexico
   
(4,951
)
 
17,823
 
Sub-total 
   
(25,109
)
 
139,037
 
Turkey
   
(3,598
)
 
(6,354
)
Other Products:
             
United States
   
1,597
   
2,215
 
Mexico
   
373
   
1,095
 
Sub-total 
   
1,970
   
3,310
 
Non-recurring recoveries
   
-
   
-
 
Total 
 
$
(26,737
)
$
135,993
 
               
Depreciation and Amortization: (a)
             
Chicken:
             
United States
 
$
29,400
 
$
24,331
 
Mexico
   
2,752
   
3,002
 
Sub-total 
   
32,152
   
27,333
 
Other Products:
   
705
   
1,622
 
United States
             
Mexico
   
2,060
   
1,419
 
Sub-total 
   
43
   
47
 
Turkey
   
2,103
   
1,466
 
Total 
 
$
34,960
 
$
30,421
 
               
Total Assets:
             
Chicken:
             
United States
 
$
1,874,282
 
$
1,989,804
 
Mexico
   
286,890
   
231,497
 
Sub-total 
   
2,161,172
   
2,221,301
 
Turkey
   
76,978
   
92,332
 
Other Products:
             
United States
   
87,778
   
86,841
 
Mexico
   
2,211
   
2,376
 
Sub-total 
   
89,989
   
89,217
 
Total 
 
$
2,328,139
 
$
2,402,850
 
               
Capital Expenditures:
             
Chicken:
             
United States
 
$
23,345
 
$
34,192
 
Mexico
 
$
1,652
   
1,494
 
Sub-total 
   
24,997
   
35,686
 
Turkey
 
$
81
   
547
 
Other Products:
             
United States
   
1,683
   
1,726
 
Mexico
   
33
   
35
 
Sub-total 
   
1,716
   
1,761
 
Total 
 
$
26,794
 
$
37,994
 

(a) Includes amortization of capitalized financing costs of approximately
 
$
477
 
$
590
 

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)
   
07/01/06
   
07/02/05
 
U.S. Chicken
             
               
U.S. Chicken Sales (000's)
 
$
1,019,918
 
$
1,123,096
 
U.S. Chicken Sales divided by U.S.Chicken Net Pounds Produced
 
$
0.6965
 
$
0.7832
 
U.S. Chicken Sales divided by U.S.Chicken Pounds Sold
 
$
0.7695
 
$
0.8754
 
               
U.S. Chicken Net Pounds Produced (000's)
   
1,464,301
   
1,447,179
 
U.S. Chicken Pounds Sold (000's)
   
1,325,452
   
1,294,820
 
               
U.S. Chicken Operating Income (000's) (e)
   
(20,158
)
 
116,774
 
U.S. Chicken Operating Income as a percent of U.S. Chicken Sales
   
-1.98
%
 
10.69
%
               
Turkey
             
               
U.S. Turkey Sales (000's)
   
15,753
   
37,538
 
U.S. Turkey Sales divided by U.S. Turkey Net Pounds Produced
 
$
0.4312
 
$
1.0338
 
U.S. Turkey Sales divided by U.S. Turkey Pounds Sold
 
$
0.7399
 
$
0.9231
 
               
U.S. Turkey Operating Income (000's)
   
(3,598
)
 
(6,354
)
U.S. Turkey Operating Income as a percent of U.S. Turkey Sales
   
-22.84
%
 
-16.93
%
               
U.S. Turkey Net Pounds Produced (000's)
   
36,533
   
36,309
 
U.S. Turkey Pounds Sold (000's)
   
21,291
   
40,665
 
               
               
U.S. Other
             
               
U.S. Other Sales
   
137,997
   
159,285
 
               
U.S. Other Operating Income
   
1,597
   
2,215
 
U.S. Distribution and Other Operating Income as a percent of U.S. Distribution Sales
   
1.16
%
 
1.5
%
               
U.S. Summary
             
               
U.S. Sales (000's)
   
1,173,668
   
1,319,919
 
U.S. Cost of Sales (000's)
   
1,133,606
   
1,128,094
 
U.S. Gross Margin (000's)
   
40,062
   
191,825
 
U.S. Gross Margin as a percent of U.S. Sales
   
3.41
%
 
14.53
%
               
U.S. Selling, General and Administrative Expenses (000's)
   
62,221
   
75,587
 
U.S. Selling, General and Administrative Expenses as a percent of U.S Sales
   
5.30
%
 
5.73
%
               
Restructuring and Related Charges - Turkey
   
-
   
(837
)
Insurance Proceeds - Turkey
   
-
   
-
 
Vitamin Settlements (000's)
   
-
       
               
U.S. Operating Income (000's)
   
(22,159
)
 
117,075
 
U.S. Operating Income as a percent of U.S. Sales
   
-1.89
%
 
8.87
%
               
Mexico Chicken
             
               
Mexico Chicken Sales (000's)
   
106,996
   
114,377
 
Mexico Chicken Sales divided by Mexico Chicken Net Pounds Produced
 
$
0.6340
 
$
0.6925
 
Mexico Chicken Sales divided by Mexico Chicken Pounds Sold
 
$
0.6022
 
$
0.6925
 
               
Mexico Net Pounds Produced (000's)
   
168,767
   
165,156
 
Mexico Net Pounds Sold (000's)
   
177,661
   
165,156
 
               
Mexico Other
             
               
Mexico Other Sales (000's)
   
6,982
   
5,743
 
               
Mexico Summary
             
               
Mexico Sales (000's)
   
113,978
   
120,120
 
Mexico Cost of Sales (000's)
   
111,344
   
93,562
 
Mexico Gross Margin (000's)
   
2,634
   
26,558
 
Mexico Gross Margin as a percent of Mexico Sales
   
2.3
%
 
22.1
%
               
Mexico Selling, General and Administrative Expenses (000's)
   
7,212
   
7,640
 
Mexico Selling, General and Administrative Expenses as a percent of Mexico Sales
   
6.3
%
 
6.4
%
               
Mexico Operating Income (000's)
   
(4,578
)
 
18,918
 
Mexico Operating Income as a percent of Mexico Sales
   
-4.0
%
 
15.7
%
               
Consolidated Operations
             
Chicken Operations:
             
Chicken Sales from all Divisions (000's)
   
1,126,914
   
1,237,473
 
Chicken Sales from all divisions divided by Chicken Net Pounds Produced from all Divisions
 
$
0.6901
 
$
0.7739
 
Chicken Sales from all divisions divided by Chicken Pounds Sold from all Divisions
 
$
0.7497
 
$
0.8547
 
               
Chicken Net Pounds Produced from all Divisions (000's)
   
1,633,068
   
1,612,335
 
Chicken Pounds Sold from all Divisions (000's)
   
1,503,113
   
1,459,976
 
               
               
Turkey Operations:
             
U.S. Turkey Sales (000's)
   
15,753
   
37,538
 
U.S. Turkey Sales divided by U.S. Turkey Net Pounds Produced
 
$
0.4312
 
$
1.0338
 
U.S. Turkey Sales divided by U.S. Turkey Pounds Sold
 
$
0.7399
 
$
0.9231
 
               
U.S. Turkey Net Pounds Produced (000's)
   
36,533
   
36,309
 
U.S. Turkey Pounds Sold (000's)
   
21,291
   
40,665
 
               
               
Other Operations:
             
Other Sales (000's)
   
144,979
   
165,028
 
               
               
Totals All Operations:
             
Total Net Sales (000's)
   
1,287,646
   
1,440,039
 
Total Cost of Sales (000's)
   
1,244,950
   
1,221,656
 
Gross Margin from all operations (000's)
   
42,696
   
218,383
 
Gross Margin from all operations as a percent of Total Net Sales
   
3.32
%
 
15.17
%
               
Total Selling, General and Administrative Expenses (000's)
   
69,433
   
83,227
 
Total Selling, General and Administrative Expenses as a percent of Total Net Sales
   
5.39
%
 
5.78
%
               
Restructuring and Related Charges - Turkey
   
-
   
(837
)
Insurance Proceeds - Turkey
   
-
   
-
 
               
Operating Income from all operations (000's)
   
(26,737
)
 
135,993
 
Operating Income from all operations as a percent of Total Net Sales
   
-2.08
%
 
9.44
%
               
Avian Influenza Reimbursement (000's)
   
-
   
-
 
Vitamin Settlements (000's)
   
-
   
-
 
Total Adjustments (000'S)
   
-
   
-
 
               
Consolidated Adjusted Operating Income (000's)
   
(26,737
)
 
135,993
 
Consolidated Adjusted Operating Income as a percent of Total Net Sales
   
-2.08
%
 
9.44
%