UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 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): October 28, 2011
PILGRIM’S PRIDE CORPORATION
(Exact Name of registrant as specified in its charter)
| Delaware | 1-9273 | 75-1285071 | ||||
| (State or other jurisdiction of incorporation) |
(Commission File Number) |
(IRS Employer Identification No.) | ||||
| 1770 Promontory Circle Greeley, CO |
80634-9038 | |||||
| (Address of principal executive offices) | (Zip Code) | |||||
Registrant’s telephone number, including area code: (970) 506-8000
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:
| ¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ | 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 |
Description | |
| 99.1 | Supplemental Historical Financial Information | |
2
Signature
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: October 28, 2011 | ||
| By: | /s/ Fabio Sandri | |
| Fabio Sandri | ||
| Chief Financial Officer | ||
3
EXHIBIT INDEX
| Exhibit |
Description | |
| 99.1 | Supplemental Historical Financial Information | |
4
Exhibit 99.1
Supplemental Historical Financial Information
Pilgrim’s Pride Corporation
Net Sales by Primary Market Line
for the Three Months 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.
| (in thousands) | Sep 25, 2011 |
Sep 26, 2010 |
||||||
| Chicken Sales: |
||||||||
| United States |
||||||||
| Prepared Foods: |
||||||||
| Foodservice |
$ | 412,759 | $ | 468,504 | ||||
| Retail |
$ | 100,333 | $ | 105,476 | ||||
|
|
|
|
|
|||||
| Total Prepared Foods |
$ | 513,092 | $ | 573,980 | ||||
| Fresh Chicken: |
||||||||
| Foodservice |
$ | 546,755 | $ | 464,704 | ||||
| Retail |
$ | 265,099 | $ | 265,193 | ||||
|
|
|
|
|
|||||
| Total Fresh Chicken |
$ | 811,854 | $ | 729,897 | ||||
| Export and Other Export: |
||||||||
| Prepared Foods |
$ | 18,025 | $ | 18,929 | ||||
| Chicken |
$ | 177,892 | $ | 99,366 | ||||
|
|
|
|
|
|||||
| Total Export (b) |
$ | 195,917 | $ | 118,295 | ||||
| Other Chicken By Products |
$ | 3,995 | $ | 3,963 | ||||
|
|
|
|
|
|||||
| Total Export and Other |
$ | 199,911 | $ | 122,257 | ||||
|
|
|
|
|
|||||
| Total U.S. Chicken |
$ | 1,524,858 | $ | 1,426,135 | ||||
|
|
|
|
|
|||||
| Mexico: |
$ | 182,169 | $ | 147,412 | ||||
| Total Chicken Sales |
$ | 1,707,027 | $ | 1,573,547 | ||||
|
|
|
|
|
|||||
| Total Prepared Foods |
$ | 531,117 | $ | 592,909 | ||||
| Sale of Other Products |
||||||||
| U.S. |
$ | 173,322 | $ | 139,051 | ||||
|
|
|
|
|
|||||
| Mexico |
$ | 10,876 | $ | 7,251 | ||||
|
|
|
|
|
|||||
| Total Other Products |
$ | 184,197 | $ | 146,303 | ||||
|
|
|
|
|
|||||
| Total Net Sales |
$ | 1,891,224 | $ | 1,719,850 | ||||
|
|
|
|
|
|||||
| Sep 25, 2011 |
Sep 26, 2010 |
|||||||
| Chicken Sales: |
||||||||
| U.S. Chicken Sales: |
||||||||
| Prepared Foods: |
||||||||
| Foodservice |
26.9 | % | 32.8 | % | ||||
| Retail |
6.6 | % | 7.4 | % | ||||
|
|
|
|
|
|||||
| Total Prepared Foods |
33.5 | % | 40.2 | % | ||||
| Fresh Chicken: |
||||||||
| Foodservice |
35.9 | % | 32.6 | % | ||||
| Retail |
17.4 | % | 18.6 | % | ||||
|
|
|
|
|
|||||
| Total Fresh Chicken |
53.3 | % | 51.2 | % | ||||
| Export and Other Export: |
||||||||
| Prepared Foods |
1.2 | % | 1.3 | % | ||||
| Chicken |
11.7 | % | 7.0 | % | ||||
|
|
|
|
|
|||||
| Total Export |
12.9 | % | 8.3 | % | ||||
| Other Chicken By Products |
0.3 | % | 0.3 | % | ||||
|
|
|
|
|
|||||
| Total Export and Other(b) |
13.2 | % | 8.6 | % | ||||
|
|
|
|
|
|||||
| Total U.S. Chicken |
100.0 | % | 100.0 | % | ||||
|
|
|
|
|
|||||
Pilgrim’s Pride Corporation
Selected Financial Data
for the Three Months 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.
| Sep 25, 2011 |
Sep 26, 2010 |
|||||||
| Income Statement Data: |
||||||||
| Net sales |
$ | 1,891,224 | $ | 1,719,850 | ||||
| Non-recurring recoveries |
— | — | ||||||
| Asset impairment and restructuring charges |
— | 2,525 | ||||||
| Gross margin |
(62,387 | ) | 157,294 | |||||
| Goodwill Impairment |
— | — | ||||||
| Selling, general and administrative expenses |
51,197 | 45,096 | ||||||
| Restructuring and related costs |
11,472 | (1,006 | ) | |||||
| Operating income (loss) |
(125,056 | ) | 113,204 | |||||
| Interest expense, net |
27,607 | 25,846 | ||||||
| Miscellaneous, net |
10,197 | (1,676 | ) | |||||
| Loss on early extinguishment of debt |
— | — | ||||||
| Restructuring items, net |
— | — | ||||||
| Income (loss) before restructuring & income taxes from continuing operations |
(162,860 | ) | 89,034 | |||||
| Income tax expense (benefit) |
(60 | ) | 30,512 | |||||
| Income (loss) from continuing operations |
(162,800 | ) | 58,522 | |||||
| Extraordinary charge - net of tax |
— | — | ||||||
| Income (loss) from operation of discontinued business, net of tax |
— | — | ||||||
| Gain on sale of discontinued business, net of tax |
— | — | ||||||
| Net income (loss) |
(162,800 | ) | 58,522 | |||||
| Net income (loss) attributable to noncontrolling interest |
(284 | ) | 596 | |||||
| Net income (loss) attributable to Pilgrim’s Pride |
$ | (162,516 | ) | $ | 57,926 | |||
| Per Common Share Data: (d) |
||||||||
| Income (loss) from continuing operations |
$ | (0.76 | ) | $ | 0.27 | |||
| Extraordinary charge - early repayment of debt |
— | — | ||||||
| Income (loss) from operation of discontinued business, net of tax |
— | — | ||||||
| Gain on sale of discontinued business, net of tax |
— | — | ||||||
| Net Income (loss) |
$ | (0.76 | ) | $ | 0.27 | |||
| Cash dividends |
$ | — | $ | — | ||||
| Book value |
$ | 3.10 | $ | 4.84 | ||||
| Balance Sheet Summary: |
||||||||
| Working capital |
$ | 826,731 | $ | 821,087 | ||||
| Total assets |
$ | 2,999,686 | $ | 3,017,981 | ||||
| Notes payable and current maturities of long-term debt |
$ | 15,609 | $ | 75,355 | ||||
| Long-term debt, less current maturities |
$ | 1,458,890 | $ | 1,166,606 | ||||
| Note payable to JBS USA Holdings, Inc. |
$ | 50,000 | — | |||||
| Total debt |
$ | 1,524,499 | $ | 1,241,961 | ||||
| Senior secured debt (included in Total Debt) |
$ | — | $ | — | ||||
| Total stockholders’ equity |
$ | 663,922 | $ | 1,036,239 | ||||
| Cash Flow Summary: |
||||||||
| Operating cash flow |
$ | 10,692 | $ | 37,250 | ||||
| Depreciation & amortization (a) |
$ | 53,631 | $ | 57,924 | ||||
| Capital expenditures |
$ | 18,717 | $ | 41,594 | ||||
| Business acquisitions |
$ | — | $ | — | ||||
| Financing activities, net |
$ | 10,499 | $ | 3,642 | ||||
| Cashflow Ratios: |
||||||||
| EBITDA (b) |
$ | (84,137 | ) | $ | 169,078 | |||
| EBITDA (last four qtrs.) |
$ | (85,426 | ) | $ | 317,803 | |||
| Adjusted EBITDA |
$ | (72,381 | ) | $ | 170,001 | |||
| Adjusted EBITDA (last four qtrs.) |
$ | (47,634 | ) | $ | 422,047 | |||
| Key Indicators (as a percentage of net sales): |
||||||||
| Gross margin |
-3.3% | 9.1% | ||||||
| Selling, general and administrative expenses |
2.7% | 2.6% | ||||||
| Operating income (loss) |
-6.6% | 6.6% | ||||||
| Interest expense, net |
1.5% | 1.5% | ||||||
| Income (loss) from continuing operations |
-8.6% | 3.4% | ||||||
| Net income (loss) |
-8.6% | 3.4% | ||||||
| (a) Includes amortization of capitalized financing costs of approximately |
$ | 2,515 | $ | 3,726 | ||||
(b) “EBITDA” is defined as the sum of income (loss) from continuing operations plus interest, taxes, depreciation and amortization. “Adjusted EBITDA” is defined as the sum of EBITDA plus restructuring charges, reorganization items and loss on early extinguishment of debt less net income attributable to noncontrolling interests. 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 results prepared in conformity with accounting principles generally accepted in the US (“GAAP”), to compare the performance of companies. We believe investors would be interested in our Adjusted EBITDA because this is how our management analyzes EBITDA from continuing operations. The Company also believes that Adjusted EBITDA, in combination with the Company’s financial results calculated in accordance with GAAP, provides investors with additional perspective regarding the impact of certain significant items on EBITDA and facilitates a more direct comparison of its performance with its competitors. EBITDA and Adjusted EBITDA are not measurements of financial performance under GAAP. They 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.
| Net Income from continuing operations |
$ | (162,800 | ) | $ | 58,522 | |||
| Add: |
||||||||
| Income Tax Expense (benefit) |
(60 | ) | 30,512 | |||||
| Interest expense, net |
27,607 | 25,846 | ||||||
| Depreciation and amortization from continued operations |
53,631 | 57,924 | ||||||
| Minus: |
||||||||
| Amortization of capitalized financing costs |
2,515 | 3,726 | ||||||
|
|
|
|
|
|||||
| EBITDA |
($ | 84,137 | ) | $ | 169,078 | |||
| Add: |
||||||||
| Restructuring charges, net |
11,472 | 1,519 | ||||||
| Reorganization items, net |
— | — | ||||||
| Loss on early extinguishment of debt |
— | — | ||||||
| Goodwill Impairment |
||||||||
| Minus: |
||||||||
| Net income (loss) attributable to noncontrolling interest |
(284 | ) | 596 | |||||
|
|
|
|
|
|||||
| Adjusted EBITDA |
($ | 72,381 | ) | $ | 170,001 |
Pilgrim’s Pride Corporation
Sales Segments
for Three Months 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.
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) | Sep 25, 2011 |
Sep 26, 2010 |
||||||
| Net Sales to Customers: |
||||||||
| Chicken: |
||||||||
| United States |
$ | 1,524,858 | $ | 1,426,134 | ||||
| Mexico |
182,169 | 147,412 | ||||||
|
|
|
|
|
|||||
| Sub-total |
1,707,027 | 1,573,546 | ||||||
| Other Products: |
||||||||
| United States |
173,322 | 139,052 | ||||||
| Mexico |
10,875 | 7,252 | ||||||
|
|
|
|
|
|||||
| Sub-total |
184,197 | 146,304 | ||||||
|
|
|
|
|
|||||
| Total |
$ | 1,891,224 | $ | 1,719,850 | ||||
|
|
|
|
|
|||||
| Operating Income: |
||||||||
| Chicken: |
||||||||
| United States |
$ | (115,135 | ) | $ | 82,169 | |||
| Mexico |
(1,209 | ) | 26,346 | |||||
|
|
|
|
|
|||||
| Sub-total |
(116,344 | ) | 108,515 | |||||
| Other Products: |
||||||||
| United States |
— | 2,502 | ||||||
| Mexico |
2,760 | 1,181 | ||||||
|
|
|
|
|
|||||
| Sub-total |
2,760 | 3,683 | ||||||
| Non-recurring recoveries |
— | — | ||||||
| Restructuring Items, net |
(11,472 | ) | (1,006 | ) | ||||
|
|
|
|
|
|||||
| Total |
$ | (125,056 | ) | $ | 113,204 | |||
|
|
|
|
|
|||||
| Depreciation and Amortization: (a) |
||||||||
| Chicken: |
||||||||
| United States |
$ | 48,083 | $ | 51,548 | ||||
| Mexico |
1,896 | 2,156 | ||||||
|
|
|
|
|
|||||
| Sub-total |
49,979 | 53,704 | ||||||
| Other Products: |
||||||||
| United States |
3,614 | 4,164 | ||||||
| Mexico |
38 | 56 | ||||||
|
|
|
|
|
|||||
| Sub-total |
3,652 | 4,220 | ||||||
|
|
|
|
|
|||||
| Total |
$ | 53,631 | $ | 57,924 | ||||
|
|
|
|
|
|||||
| Total Assets: |
||||||||
| Chicken: |
||||||||
| United States |
$ | 2,427,963 | $ | 2,487,306 | ||||
| Mexico |
386,124 | 372,417 | ||||||
|
|
|
|
|
|||||
| Sub-total |
2,814,087 | 2,859,723 | ||||||
| Other Products: |
||||||||
| United States |
181,692 | 155,101 | ||||||
| Mexico |
3,907 | 3,157 | ||||||
|
|
|
|
|
|||||
| Sub-total |
185,599 | 158,258 | ||||||
|
|
|
|
|
|||||
| Total |
$ | 2,999,686 | $ | 3,017,981 | ||||
|
|
|
|
|
|||||
| Capital Expenditures: |
||||||||
| Chicken: |
||||||||
| United States |
$ | 16,711 | $ | 39,474 | ||||
| Mexico |
$ | 2,006 | $ | 1,864 | ||||
|
|
|
|
|
|||||
| Sub-total |
18,717 | 41,338 | ||||||
| Other Products: |
||||||||
| United States |
— | 256 | ||||||
| Mexico |
— | — | ||||||
|
|
|
|
|
|||||
| Sub-total |
— | 256 | ||||||
|
|
|
|
|
|||||
| Total |
$ | 18,717 | $ | 41,594 | ||||
|
|
|
|
|
|||||
| (a) Includes amortization of capitalized financing costs of approximately |
$ | 2,515 | $ | 3,726 | ||||