View:
Download DOC
Download PDF
Download XLS
form8_k.htm


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): May 5, 2008



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: May 5, 2008
 
 
 
 
 
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.htm

Pilgrim's Pride Corporation
  
Net Sales by Primary Market Line
  
for Quarters 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.
  
Mar 29,
  
Dec 29,
  
Sep 29,
  
Jun 30,
  
Mar 31,
  
Dec 30,
 
2008
  
2007
  
2007
  
2007
  
2007 (a)
  
2006(b)
                       
Chicken Sales:                      
  United States                      
        Prepared Foods:                      
             Foodservice $497,757   $523,069   $532,163   $493,872   $489,046   $382,563
             Retail $133,821   $118,757   $133,466   $147,835   $134,205   $95,964
                  Total Prepared Foods $631,578   $641,826   $665,629   $641,707   $623,251   $478,526
                       
        Fresh Chicken:                       
             Foodservice $617,341   $626,209   $646,305   $670,203   $632,163   $331,386
             Retail $264,414   $243,618   $269,095   $298,055   $286,679   $121,830
                  Total Fresh Chicken $881,755   $869,827   $915,401   $968,258   $918,841   $453,216
        Export and Other                      
           Export:                      
             Prepared Foods $22,733   $21,614   $21,466   $24,358   $19,555   $17,937
             Chicken $181,784   $190,001   $197,192   $168,514   $116,398   $77,324
             Total Export $204,517   $211,615   $218,659   $192,872   $135,953   $95,261
          Other Chicken By Products $5,118   $4,873   $4,937   $6,481   $5,417   $3,945
                  Total Export and Other $209,635   $216,488   $223,596   $199,353   $141,370   $99,206
                  Total U.S. Chicken $1,722,967   $1,728,142   $1,804,625   $1,809,318   $1,683,462   $1,030,949
                       
    Mexico: $127,312   $120,998   $122,875   $131,637   $111,046   $122,909
                  Total Chicken Sales $1,850,279   $1,849,140   $1,927,500   $1,940,954   $1,794,508   $1,153,857
                       
                  Total Prepared Foods 654,311   663,440   687,095   666,065   642,806   496,464
                       
Turkey Sales:                      
        Prepared Foods:                      
             Foodservice                      
             Retail                      
                  Total Prepared Foods                      
                       
        Fresh Turkey:                       
             Foodservice                      
             Retail                      
                  Total Fresh Turkey                      
        Export and Other                      
           Export:                      
             Prepared Foods                      
             Turkey                      
             Total Export                      
           Other Turkey By Products                      
                  Total Export and Other                      
                  Total Turkey Sales                      
                       
                  Total Prepared Foods                      
                       
         Sale of Other Products                      
                                U.S.  $243,908   $190,389   $179,001   $157,792   $188,671   $135,650
                                Mexico  $6,607   $7,824   $8,470   $5,753   $4,006   $2,449
                  Total Other Products $250,515   $198,213   $187,471   $163,545   $192,677   $138,100
Total Net Sales $2,100,794   $2,047,353   $2,114,971   $2,104,499   $1,987,185   $1,291,957
 
 
(a)  The acquisition of Gold Kist, Inc. occurred on December 27, 2006 and has been accounted for as a purchase, however the results of operations for this acquisition were not included in our consolidated results of operations until the second fiscal quarter beginning December 31, 2006.
 
(b) Results related to discontinued business have been excluded from this analysis since the quarter ended 12/30/2006.
        
 
 
 
Mar 29,
  
Dec 29,
  
Sep 29,
  
Jun 30,
  
Mar 31,
  
Dec 30,
 
2008
  
2007
  
2007
  
2007
  
2007 (a)
  
2006(b)
                       
Chicken Sales:                      
  U.S. Chicken Sales:                      
        Prepared Foods:                      
             Foodservice 28.9%   30.2%   29.5%   27.3%   29.0%   37.2%
             Retail 7.8%   6.9%   7.4%   8.2%   8.0%   9.3%
                  Total Prepared Foods 36.7%   37.1%   36.9%   35.5%   37.0%   46.5%
                       
        Fresh Chicken:                       
             Foodservice 35.8%   36.2%   35.8%   37.0%   37.6%   32.1%
             Retail 15.3%   14.1%   14.9%   16.5%   17.0%   11.8%
                  Total Fresh Chicken 51.1%   50.3%   50.7%   53.5%   54.6%   43.9%
        Export and Other                      
           Export:                      
             Prepared Foods 1.3%   1.3%   1.2%   1.3%   1.2%   1.7%
             Chicken 10.6%   11.0%   10.9%   9.3%   6.9%   7.5%
             Total Export 11.9%   12.3%   12.1%   10.6%   8.1%   9.2%
           Other Chicken By Products 0.3%   0.3%   0.3%   0.4%   0.3%   0.4%
                  Total Export and Other 12.2%   12.6%   12.4%   11.0%   8.4%   9.6%
                  Total U.S. Chicken 100.0%   100.0%   100.0%   100.0%   100.0%   100.0%
                       
                       
                       
Turkey Sales:                      
  U.S. Turkey Sales:                      
        Prepared Foods:                      
             Foodservice                      
             Retail                      
                  Total Prepared Foods                      
                       
        Fresh Turkey:                       
             Foodservice                      
             Retail                      
                  Total Fresh Turkey                      
        Export and Other                      
           Export:                      
             Prepared Foods                      
             Turkey                      
             Total Export                      
           Other Turkey By Products                      
                  Total Export and Other                      
                  Total U.S. Turkey                      
 
 
 
(a)  The acquisition of Gold Kist, Inc. occurred on December 27, 2006 and has been accounted for as a purchase, however the results of operations for this acquisition were not included in our consolidated results of operations until the second fiscal quarter beginning December 31, 2006.


(b) Results related to discontinued business have been excluded from this analysis since the quarter ended 12/30/2006.
        
 

 

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.
  
03/29/08
12/29/07
09/29/07
06/30/07
3/31/07
    12/30/06     (b)(d)
(In thousands except per share data)                
Income Statement Data:                        
Net sales    $        2,100,794    $        2,047,353    $        2,114,971    $        2,104,499    $        1,987,185    $        1,291,957
Non-recurring recoveries                           -                             -                             -                             -                             -                             -  
Asset impairment                   12,022                    
Restructuring and related costs                     5,669                           -                             -                             -                             -                             -  
Gross margin                 (35,401)                 105,103                 211,618                 234,825                   84,049                   62,238
Selling, general and administrative expenses                 102,559 (j)               104,433                   95,747                   97,929                   94,723                   67,140
Operating income (loss)               (143,629)                        670                 115,871                 136,896                 (10,674)                   (4,902)
Interest expense, net                   33,331                   29,503                   29,497                   39,876                   37,012                   12,411
Loss on early extinguishment of debt                           -                             -                     11,988                           -                     14,475    
Miscellaneous, net                   (1,161)                   (2,863)                        899                   (2,869)                   (3,668)                   (1,011)
Income (loss) before income taxes from continuing operations               (175,799)                 (25,970)                   73,487                   99,889                 (58,493)                 (16,302)
Income tax expense (benefit)                 (64,295)                     7,240                   36,448                   36,647                 (19,427)                   (6,444)
Income (loss) from continuing operations               (111,504)                 (33,210)                   37,039                   63,242                 (39,066)                   (9,858)
Extraordinary charge - net of tax                           -                             -                             -                             -                             -                             -  
Income(loss) from operation of discontinued business, net of tax                      (847)                        881                   (3,851)                      (601)                   (1,010)                     1,122
Gain on sale of discontinued business, net of tax                        903                           -                             -              
Net income (loss)    $         (111,448)    $           (32,329)    $             33,188    $             62,641    $           (40,076)    $             (8,736)
                           
Per Common Share Data:                        
Income (loss) from continuing operations    $               (1.68)    $               (0.50)    $                 0.56    $                 0.95    $               (0.59)    $               (0.15)
Extraordinary charge - early repayment of debt                           -                             -                             -                             -                             -                             -  
Income(loss) from operation of discontinued business, net of tax                     (0.01)                       0.01                     (0.06)                     (0.01)                     (0.01)                       0.02
Gain on sale of discontinued business, net of tax                       0.01                           -                             -                             -                             -                             -  
Net Income (loss)    $               (1.68)    $               (0.49)    $                 0.50    $                 0.94    $               (0.60)    $               (0.13)
Cash dividends    $               0.023    $               0.023    $               0.023    $               0.023    $               0.023    $               0.023
Book value    $               15.40    $               17.10    $               17.61    $               16.98    $               16.06    $               16.68
                           
Balance Sheet Summary:                        
Working capital    $           581,404    $           455,623    $           394,666    $           717,527    $           741,231    $           642,410
Total assets    $        3,892,030    $        3,836,712    $        3,774,236    $        4,187,550    $        4,146,997    $        4,077,183
Notes payable and current maturities of long-term debt    $               2,891    $             89,384    $               2,872    $               3,134    $               8,253    $               4,746
Long-term debt, less current maturities    $        1,629,930    $        1,317,562    $        1,318,558    $        1,718,774    $        1,789,518    $           713,105
Total debt    $        1,632,821    $        1,406,946    $        1,321,430    $        1,721,908    $        1,797,771    $           717,851
Senior secured debt (included in Total Debt)    $                     -      $                     -      $                     -      $                     -      $                     -      $                     -  
Total stockholders' equity    $        1,024,764    $        1,138,228    $        1,172,221    $        1,130,034    $        1,068,848    $        1,110,331
                           
Cash Flow Summary:                         
Operating cash flow     $         (210,535)    $           (40,536)    $           411,062    $           108,638    $         (140,579)    $             19,185
Depreciation & amortization (c)    $             60,057    $             55,544    $             56,373    $             57,601    $             54,576    $             32,323
Capital expenditures    $             27,533    $             42,684    $             36,163    $             41,711    $             55,099    $             39,350
Business acquisitions     $                     -      $                     -      $               6,747    $                     -      $      (1,072,263)    $             34,065
Financing activities, net    $           225,993    $           112,873    $         (371,781)    $           (77,548)    $        1,078,423    $               7,665
                           
Cashflow Ratios:                        
EBITDA (c)    $           (83,413)    $             58,914    $           151,885    $           195,647    $             30,975    $             28,849
EBITDA (last four qtrs.)    $           323,036    $           437,424    $           407,357    $           312,679    $           125,008    $             90,757
                           
Key Indicators (as a percentage of net sales):                        
Gross margin   -1.7%   5.1%   10.0%   11.2%   4.2%   4.8%
Selling, general and administrative expenses   5.2%   5.1%   4.5%   4.7%   4.8%   5.2%
Operating income (loss)   -6.8%   0.0%   5.5%   6.5%   -0.5%   -0.4%
Interest expense, net   1.6%   1.4%   1.4%   1.9%   1.9%   1.0%
Net income (loss)   -5.3%   -1.6%   1.6%   3.0%   -2.0%   -0.7%
 
(a) The quarter ended March 29, 2008, includes $5.7 million of restructuring charges related to the closure of the Siler City complex and six distribution centers.
 
(b) Results related to discontinued business have been excluded from this analysis since the quarter ended 12/30/2006. 
 
(c)  Includes amortization of capitalized financing costs of approximately      $               1,058    $               1,044    $               3,621    $               1,118    $               1,110    $                  705
 
(d) The quarter ended December 30, 2006 includes the acquisition of Gold Kist which occurred December 27, 2006.
 
(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    $         (111,448)    $           (32,329)    $             33,188    $             62,641    $           (40,076)    $             (8,736)
  Add:                         
       Extraordinary charge-net of tax                            -                             -                             -                             -                             -                             -  
       Income Tax Expense (benefit)                 (64,295)                     7,240                   36,448                   36,647                 (19,427)                   (6,444)
       Interest expense, net                   33,331                   29,503                   29,497                   39,876                   37,012                   12,411
       Depreciation and amortization                   60,057                   55,544                   56,373                   57,601                   54,576                   32,323
  Minus:                        
     Amortization of capitalized financing costs                     1,058                     1,044                     3,621                     1,118                     1,110                        705
EBITDA   ($83,413)   $58,914   $151,885   $195,647   $30,975   $28,849


 
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)     3/29/2008   12/29/2007   9/29/2007   6/30/2007   3/31/2007(c)   12/30/2006
Net Sales to Customers:                        
Chicken:                            
  United States      $     1,722,967    $     1,728,142    $     1,804,625    $     1,809,318    $     1,683,463    $     1,030,948
  Mexico                127,312              120,998              122,875              131,636              111,046              122,909
    Sub-total             1,850,279           1,849,140           1,927,500           1,940,954           1,794,509           1,153,857
Turkey                            
Other Products:                          
  United States                243,907              190,389              179,001              157,793              188,670 .            135,651
  Mexico                    6,608                  7,824                  8,470                  5,752                  4,006                  2,449
    Sub-total                250,515              198,213              187,471              163,545              192,676              138,100
    Total (d)    $     2,100,794    $     2,047,353    $     2,114,971    $     2,104,499    $     1,987,185    $     1,291,957
                               
Operating Income:                          
Chicken:                            
  United States      $      (174,253)    $        (19,094)    $          91,292    $        116,748    $          (4,147)    $        (11,446)
  Mexico                  (3,720)                (4,092)                  9,965                14,427              (12,605)                  1,329
    Sub-total              (177,973)              (23,186)              101,257              131,175              (16,752)              (10,117)
Turkey                            
Other Products                          
  United States                  33,464                22,771                13,557                  4,873                  5,558                  4,648
  Mexico                       880                  1,085                  1,057                     848                     520                     567
    Sub-total                  34,344                23,856                14,614                  5,721                  6,078                  5,215
  Non-recurring recoveries                          -                          -                          -                          -                          -                          -
    Total (d)    $      (143,629) (e)  $               670    $        115,871    $        136,896    $        (10,674)    $          (4,902)
                               
Depreciation and Amortization: (a)                      
Chicken:                            
  United States      $          54,129    $          50,203    $          53,688    $          53,629    $          49,046    $          27,445
  Mexico                    2,680                  2,564                  2,709                  2,754                  2,746                  2,806
    Sub-total                  56,809                52,767                56,397                56,383                51,792                30,251
Turkey                            
Other Products                          
  United States                    3,185                  2,715                  2,361                  1,160                  2,729                  2,028
  Mexico                         63                       62                       59                       58                       54                       44
    Sub-total                    3,248                  2,777                  2,420                  1,218                  2,783                  2,072
    Total (d)    $          60,057    $          55,544    $          58,817    $          57,601    $          54,575    $          32,323
                               
Total Assets:(b)                          
Chicken:                            
  United States      $     3,350,418    $     3,294,137    $     3,247,812    $     3,619,620    $     3,623,780    $     3,546,385
  Mexico                375,923              360,680              348,894              381,982              353,765              387,506
    Sub-total             3,726,341           3,654,817           3,596,706           4,001,602           3,977,545           3,933,891
Turkey                            
Other Products                          
  United States                127,023              136,590              104,644              114,194              112,199                99,737
  Mexico                    3,690                  4,161                  4,120                  3,700                  2,269                  1,879
    Sub-total                130,713              140,751              108,764              117,894              114,468              101,616
    Total (d)    $     3,857,054    $     3,795,568    $     3,705,470    $     4,119,496    $     4,092,013    $     4,035,507
                               
Capital Expenditures:                        
Chicken:                            
  United States      $          26,464    $          41,353    $          33,406    $          40,307    $          53,896    $          36,198
  Mexico                         69                     710    $               378    $               262    $               372    $            1,265
    Sub-total                  26,533                42,063                33,784                40,569                54,268                37,463
Turkey                            
Other Products                          
  United States                       715                     608                  2,163                  1,044                     668                  1,824
  Mexico                       285                        -                            -                          -                         2                       38
    Sub-total                    1,000                     608                  2,163                  1,044                     670                  1,862
    Total (d)    $          27,533    $          42,671    $          35,947    $          41,613    $          54,938    $          39,325
 
 
(a)   Includes amortization of capitalized financing costs of approximately           $            1,044    $            1,044    $            3,621    $            1,118    $            1,110    $               705
 
(b) The quarter ended December 30, 2006 includes the acquisition of Gold Kist which occurred December 27, 2006.
 
(c) The acquisition of Gold Kist, Inc. occurred on December 27, 2006 and has been accounted for as a purchase, however the results of operations for this acquisition were not included in our consolidated results of operations until the second fiscal quarter beginning December 31, 2006.

(d)   Excludes amounts for discontinued business for the following items:                
  Sales                    10,154                45,858                34,145                13,887                  6,780                45,175
  Operating Income                  (1,152)                  1,739                (5,507)                   (119)                (1,024)                  1,996
  Depreciation                       316                     379                     408                     404                     401                     374
  Total Assets                  34,976                41,144                68,766                68,054                54,984                41,576
  Capital Expenditures                        -                         13                     216                       98                     163                       25
 
(e) Includes Asset Impairment and Restructuring charges of $12.0 million and $5.7 million, respectively.

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 )                        
   
03/29/08
  
12/29/07
  
09/29/07
  
06/30/07
  
3/31/2007 (a)
  
12/30/2006 (b)
U.S. Chicken                        
                         
U.S. Chicken Sales (000's)    $             1,722,967    $             1,728,142    $             1,804,625    $             1,809,318    $             1,683,463    $             1,030,948
U.S. Chicken Sales divided by U.S.Chicken Net Pounds Produced   $0.8076   $0.7824   $0.8375   $0.8420   $0.8037   $0.7284
U.S. Chicken Sales divided by U.S.Chicken Pounds Sold   $0.9153   $0.8930   $0.9269   $0.9325   $0.8926   $0.8135
                         
U.S. Chicken Net Pounds Produced (000's)   2,133,459   2,208,814   2,154,848   2,148,848   2,094,765   1,415,307
U.S. Chicken Pounds Sold (000's)   1,882,495   1,935,248   1,946,961   1,940,206   1,885,969   1,267,223
                         
U.S. Chicken Operating Income (000's)                     (174,253)                       (19,094)                        91,292                      116,748                         (4,147)                       (11,446)
U.S. Chicken Operating Income as a percent of U.S. Chicken Sales   -10.11%   -1.10%   5.06%   6.45%   -0.25%   -1.11%
                         
Turkey                        
                         
U.S. Turkey Sales (000's)                        
U.S. Turkey Sales divided by U.S. Turkey Net Pounds Produced                        
U.S. Turkey Sales divided by U.S. Turkey Pounds Sold                        
                         
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. Turkey Pounds Sold (000's)                        
                         
                         
U.S. Other                        
                         
U.S. Other Sales   243,907   190,389   179,001   157,793   188,670   135,651
                         
U.S. Other Operating Income (c)                        33,464                        22,771                        13,557                          4,873                          5,558                          4,648
U.S. Distribution and Other Operating Income as a percent of U.S. Distribution Sales   13.72%   11.96%   7.57%   3.09%   2.95%   3.43%
                         
U.S. Summary                        
                         
U.S. Sales (000's)   1,966,874   1,918,531   1,983,626   1,967,111   1,872,133   1,166,599
U.S. Cost of Sales (000's)   2,006,219   1,816,647   1,788,079   1,754,585   1,783,631   1,114,570
U.S. Gross Margin (000's)   (39,345)   101,884   195,547   212,526   88,502   52,029
U.S. Gross Margin as a percent of U.S. Sales   -2.00%   5.31%   9.86%   10.80%   4.73%   4.46%
                         
U.S. Selling, General and Administrative Expenses (000's)   101,444   98,207   90,698   90,905   87,091   58,827
U.S. Selling, General and Administrative Expenses as a percent of U.S Sales   5.16%   5.12%   4.57%   4.62%   4.65%   5.04%
                         
Restructuring and Related Charges - Turkey                                -                                  -                                  -                                  -                                  -                                  -  
Insurance Proceeds - Turkey                                -                                  -                                  -                                  -                                  -                                  -  
Vitamin Settlements (000's)                                -                                  -                                  -                                  -                                  -                                  -  
                         
U.S. Operating Income (000's)   (140,789)   3,677   104,849   121,621   1,411   (6,798)
U.S. Operating Income as a percent of U.S. Sales   -7.16%   0.19%   5.29%   6.18%   0.08%   -0.58%
                         
Mexico Chicken                        
                         
Mexico Chicken Sales (000's)   127,312   120,998   122,875   131,636   111,046   122,909
Mexico Chicken  Sales divided by Mexico Chicken Net Pounds Produced   $0.7443   $0.6770   $0.7447   $0.7749   $0.6757   $0.7014
Mexico Chicken  Sales divided by Mexico Chicken Pounds Sold   $0.7443   $0.6770   $0.7447   $0.7749   $0.6619   $0.6675
                         
Mexico Net Pounds Produced (000's)   171,057   178,732   165,006   169,868   164,337   175,234
Mexico Net Pounds Sold (000's)   171,057   178,733   165,006   169,867   167,781   184,122
                         
Mexico Other                        
                         
Mexico Other Sales (000's)   6,608   7,824   8,470   5,752   4,006   2,449
                         
Mexico Summary                        
                         
Mexico Sales (000's)                      133,920                      128,822                      131,345                      137,388                      115,052                      125,358
Mexico Cost of Sales (000's)                      129,976                      125,603                      115,274                      115,089                      119,505                      115,149
Mexico Gross Margin (000's)                          3,944                          3,219                        16,071                        22,299                         (4,453)                        10,209
Mexico Gross Margin as a percent of Mexico Sales   2.9%   2.5%   12.2%   16.2%   -3.9%   8.1%
                         
Mexico Selling, General and Administrative Expenses (000's)                          6,784                          6,226                          5,049                          7,024                          7,632                          8,313
Mexico Selling, General and Administrative Expenses as a percent of Mexico Sales   5.1%   4.8%   3.8%   5.1%   6.6%   6.6%
                         
Mexico Operating Income (000's)                         (2,840)                         (3,007)                        11,022                        15,275                       (12,085)                          1,896
Mexico Operating Income as a percent of Mexico Sales   -2.1%   -2.3%   8.4%   11.1%   -10.5%   1.5%
                         
Consolidated Operations                        
Chicken Operations:                        
Chicken Sales from all Divisions (000's)   1,850,279   1,849,140   1,927,500   1,940,954   1,794,509   1,153,857
Chicken Sales from all divisions divided by Chicken Net Pounds Produced from all Divisions   $0.8029   $0.7745   $0.8309   $0.8371   $0.7943   $0.7254
Chicken Sales from all divisions divided by Chicken Pounds Sold from all Divisions   $0.9010   $0.8747   $0.9127   $0.9199   $0.8738   $0.7950
                         
Chicken Net Pounds Produced from all Divisions (000's)   2,304,516   2,387,546   2,319,854   2,318,716   2,259,102   1,590,541
Chicken Pounds Sold from all Divisions (000's)   2,053,552   2,113,981   2,111,967   2,110,073   2,053,750   1,451,345
                         
                         
Turkey Operations:                        
U.S. Turkey Sales (000's)                        
U.S. Turkey Sales divided by U.S. Turkey Net Pounds Produced                        
U.S. Turkey Sales divided by U.S. Turkey Pounds Sold                        
                         
U.S. Turkey Net Pounds Produced (000's)                        
U.S. Turkey Pounds Sold (000's)                        
                         
                         
Other Operations:                        
Other Sales (000's)   250,515   198,213   187,471   163,545   192,676   138,100
                         
                         
Totals All Operations:                        
Total Net Sales (000's)   2,100,794   2,047,353   2,114,971   2,104,499   1,987,185   1,291,957
Total Cost of Sales (000's)   2,136,195   1,942,250   1,903,353   1,869,674   1,903,136   1,229,719
Gross Margin from all operations (000's)   (35,401)   105,103   211,618   234,825   84,049   62,238
Gross Margin from all operations as a percent of Total Net Sales   -1.69%   5.13%   10.01%   11.16%   4.23%   4.82%
                         
Total Selling, General and Administrative Expenses (000's)   108,228   104,433   95,747   97,929   94,723   67,140
Total Selling, General and Administrative Expenses as a percent of Total Net Sales   5.15%   5.10%   4.53%   4.65%   4.77%   5.20%
                         
Restructuring and Related Charges - Turkey                                -                                  -                                  -                                  -                                  -                                  -  
Insurance Proceeds - Turkey                                -                                  -                                  -                                  -                                  -                                  -  
                         
Operating Income from all operations (000's)   (143,629)   670   115,871   136,896   (10,674)   (4,902)
Operating Income from all operations as a percent of Total Net Sales   -6.84%   0.03%   5.48%   6.50%   -0.54%   -0.38%
                         
   Avian Influenza Reimbursement (000's)                                     -                                  -                                  -                                  -                                  -                                  -  
   Vitamin Settlements (000's)                                -                                  -                                  -                                  -                                  -                                  -  
         Total Adjustments (000'S)                                -                                  -                                  -                                  -                                  -                                  -  
                         
Consolidated Adjusted Operating Income (000's)                     (143,629)                             670                      115,871                      136,896                       (10,674)                         (4,902)
Consolidated Adjusted Operating Income as a percent of Total Net Sales   -6.84%   0.03%   5.48%   6.50%   -0.54%   -0.38%

 
(a)  The acquisition of Gold Kist, Inc. occurred on December 27, 2006 and has been accounted for as a purchase, however the results of operations for this acquisition were not included in our consolidated results of operations until the second fiscal quarter beginning December 31, 2006.
 
(b)  Results related to discontinued business have been excluded from this analysis since the quarter ended 12/30/2006.  


Pilgrim's Pride Corporation                    
Proforma Statistical Management Discussion and Analysis (a)                  
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 )  
  12/30/06 (a)(b)
U.S. Chicken  
   
U.S. Chicken Sales (000's)  $             1,545,876
U.S. Chicken Sales divided by U.S.Chicken Net Pounds Produced $0.7003
U.S. Chicken Sales divided by U.S.Chicken Pounds Sold $0.7964
   
U.S. Chicken Net Pounds Produced (000's) 2,207,351
U.S. Chicken Pounds Sold (000's) 1,941,101
   
U.S. Chicken Operating Income (000's) (g)                     (44,614)
U.S. Chicken Operating Income as a percent of U.S. Chicken Sales -2.89%
   
Turkey  
   
U.S. Turkey Sales (000's)  
U.S. Turkey Sales divided by U.S. Turkey Net Pounds Produced  
U.S. Turkey Sales divided by U.S. Turkey Pounds Sold  
   
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. Turkey Pounds Sold (000's)  
   
   
U.S. Other  
   
U.S. Other Sales 147,965
   
U.S. Other Operating Income (g)                        5,279
U.S. Distribution and Other Operating Income as a percent of U.S. Distribution Sales 3.57%
   
U.S. Summary  
   
U.S. Sales (000's) 1,693,841
U.S. Cost of Sales (000's) 1,641,786
U.S. Gross Margin (000's) 52,055
U.S. Gross Margin as a percent of U.S. Sales 3.07%
   
U.S. Selling, General and Administrative Expenses (000's) 89,404
U.S. Selling, General and Administrative Expenses as a percent of U.S Sales 5.28%
   
Restructuring and Related Charges - Turkey                              -  
   
U.S. Operating Income (000's) (37,349)
U.S. Operating Income as a percent of U.S. Sales -2.20%
   
Mexico Chicken  
   
Mexico Chicken Sales (000's) 122,909
Mexico Chicken  Sales divided by Mexico Chicken Net Pounds Produced $0.7014
Mexico Chicken  Sales divided by Mexico Chicken Pounds Sold $0.6675
   
Mexico Net Pounds Produced (000's) 175,234
Mexico Net Pounds Sold (000's) 184,122
   
Mexico Other  
   
Mexico Other Sales (000's) 2,449
   
Mexico Summary  
   
Mexico Sales (000's)                    125,358
Mexico Cost of Sales (000's)                    115,149
Mexico Gross Margin (000's)                      10,209
Mexico Gross Margin as a percent of Mexico Sales 8.1%
   
Mexico Selling, General and Administrative Expenses (000's)                        8,313
Mexico Selling, General and Administrative Expenses as a percent of Mexico Sales 6.6%
   
Mexico Operating Income (000's)                        1,896
Mexico Operating Income as a percent of Mexico Sales 1.5%
   
Consolidated Operations  
Chicken Operations:  
Chicken Sales from all Divisions (000's) 1,668,785
Chicken Sales from all divisions divided by Chicken Net Pounds Produced from all Divisions $0.7004
Chicken Sales from all divisions divided by Chicken Pounds Sold from all Divisions $0.7852
   
Chicken Net Pounds Produced from all Divisions (000's) 2,382,585
Chicken Pounds Sold from all Divisions (000's) 2,125,223
   
   
Turkey Operations:  
U.S. Turkey Sales (000's)  
U.S. Turkey Sales divided by U.S. Turkey Net Pounds Produced  
U.S. Turkey Sales divided by U.S. Turkey Pounds Sold  
   
U.S. Turkey Net Pounds Produced (000's)  
U.S. Turkey Pounds Sold (000's)  
   
   
Other Operations:  
Other Sales (000's) 150,414
   
   
Totals All Operations:  
Total Net Sales (000's) 1,819,199
Total Cost of Sales (000's) 1,756,935
Gross Margin from all operations (000's) 62,264
Gross Margin from all operations as a percent of Total Net Sales 3.42%
   
Total Selling, General and Administrative Expenses (000's) 97,717
Total Selling, General and Administrative Expenses as a percent of Total Net Sales 5.37%
   
Restructuring and Related Charges - Turkey                              -  
   
Operating Income from all operations (000's) (35,453)
Operating Income from all operations as a percent of Total Net Sales -1.95%
 
(a)  The acquisition of Gold Kist, Inc. occurred on December 27, 2006 and has been accounted for as a purchase, however the results of operations for this acquisition were not included in our consolidated results of operations until the second fiscal quarter beginning December 31, 2006.
 
(b)  Results related to discontinued business have been excluded from this analysis since the quarter ended 12/30/2006.