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): February 14, 2013
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:
o |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
o |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
o |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
o |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02. Results of Operations and Financial Condition.
On February 14, 2013 the Registrant issued a press release, a copy of which is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits.
Exhibit 99.1 | Press release dated February 14, 2013 |
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: | February 15, 2013 | By: | /s/ Fabio Sandri | ||
Fabio Sandri | |||||
Chief Financial Officer |
Exhibit Index
Exhibit 99.1 | Press release dated February 14, 2013 |
Pilgrims Pride Reports Solid Conclusion to Fiscal 2012
GREELEY, Colo., February 14, 2013 Pilgrims Pride Corporation (NASDAQ: PPC) reported fourth quarter 2012 results with net sales of $2.2 billion, Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”) of $64.4 million and net income of $22.8 million, resulting in earnings per share of $0.09 for the quarter.
For the full 2012 fiscal year, the Company achieved $8.1 billion in net sales and $393.9 million of EBITDA. Pilgrims recognized $174.2 million in net income for the year, or $0.70 per weighted average share, making it one of the Companys best result in recent years. Net debt declined to $1.1 billion during the period, reflecting a year-to-date reduction of $327.8 million.
The results achieved in 2012 point to a determined and disciplined execution of the strategy we implemented over a year and half ago. Through our team members efforts, we have improved our competitive position significantly over the past two years and we believe we are well positioned for that to continue, stated Bill Lovette, Pilgrims Chief Executive Officer.
Mr. Lovette continued While increased chicken pricing have helped offset the volatile increase in feed costs, our changes in sales mix, yield improvements and driving costs out of our plants and SG&A have made a pivotal impact. We continue to focus on creating value for our key customers, relentless pursuit of operational excellence and growing our value added exports in order to maintain the trajectory of improvement in 2013 and beyond.
Conference Call Information
A conference call to discuss Pilgrims quarterly results will be held tomorrow, February 15 at 7:00 a.m. Mountain (9 a.m. Eastern). Participants are encouraged to pre-register for the conference call using the link below. Callers who pre-register will be given a unique PIN to gain immediate access to the call and bypass the live operator. Participants may pre-register at any time, including up to and after the call start time.
To pre-register, go to:
http://services.choruscall.com/links/ppc130215.html
You may also reach the pre-registration link by logging in through the investor section of our website at www.pilgrims.com and clicking on the link under Upcoming Events.
For those who would like to join the call but have not pre-registered, access is available by dialing +1 (877) 270-2148 within the US or +1 (412) 902-6510 internationally and requesting the Pilgrims Pride Conference. Please note that to submit a question to management during the call, you must be logged in via telephone.
Replays of the conference call will be available on Pilgrims website approximately two hours after the call concludes and can be accessed through the Investor section of www.pilgrims.com. The webcast will be available for replay through May 2, 2013.
About Pilgrims Pride
Pilgrims employs approximately 38,000 people and operates chicken processing plants and prepared-foods facilities in 12 states, Puerto Rico and Mexico. The Companys primary distribution is through retailers and foodservice distributors.
Forward-Looking Statements
Statements contained in this press release that state the intentions, plans, hopes, beliefs, anticipations, expectations or predictions of the future of Pilgrims Pride Corporation and its management are considered forward-looking statements. It is important to note that actual results could differ materially from those projected in such forward-looking statements. Factors that could cause actual results to differ materially from those projected in such forward-looking statements include: matters affecting the poultry industry generally; the ability to execute the Companys business plan to achieve desired cost savings and profitability; future pricing for feed ingredients and the Companys products; outbreaks of avian influenza or other diseases, either in Pilgrims Prides flocks or elsewhere, affecting its ability to conduct its operations and/or demand for its poultry products; contamination of Pilgrims Prides products, which has previously and can in the future lead to product liability claims and product recalls; exposure to risks related to product liability, product recalls, property damage and injuries to persons, for which insurance coverage is expensive, limited and potentially inadequate; management of cash resources; restrictions imposed by, and as a result of, Pilgrims Prides leverage; changes in laws or regulations affecting Pilgrims Prides operations or the application thereof; new immigration legislation or increased enforcement efforts in connection with existing immigration legislation that cause the costs of doing business to increase, cause Pilgrims Pride to change the way in which it does business, or otherwise disrupt its operations; competitive factors and pricing pressures or the loss of one or more of Pilgrims Prides largest customers; currency exchange rate fluctuations, trade barriers, exchange controls, expropriation and other risks associated with foreign operations; disruptions in international markets and distribution channel, including anti-dumping proceedings and countervailing duty proceedings; and the impact of uncertainties of litigation as well as other risks described under Risk Factors in the Companys Annual Report on Form 10-K and subsequent filings with the Securities and Exchange Commission. Pilgrims Pride Corporation undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
Contact: | Rosemary Geelan | |
Pilgrims Pride Corp Investor Relations | ||
Rosemary.geelan@pilgrims.com | ||
(970) 506-8192 |
PILGRIMS PRIDE
CORPORATION
Consolidated Balance Sheets
December 30 | December 25, | |||||||
2012 | 2011 | |||||||
(In thousands) | ||||||||
Cash and cash equivalents | $ | 68,180 | $ | 41,609 | ||||
Restricted cash and cash equivalents | - | 7,680 | ||||||
Investment in available-for-sale securities | - | 157 | ||||||
Trade accounts and other receivables, less allowance | ||||||||
for doubtful accounts | 384,930 | 349,222 | ||||||
Account receivable from JBS USA, LLC | 1,514 | 21,198 | ||||||
Inventories | 950,296 | 879,094 | ||||||
Income taxes receivable | 54,719 | 59,067 | ||||||
Prepaid expenses and other current assets | 56,047 | 52,350 | ||||||
Assets held for sale | 27,042 | 53,816 | ||||||
Total current assets | 1,542,728 | 1,464,193 | ||||||
Investment in available-for-sale securities | - | 497 | ||||||
Deferred tax assets | 97,431 | 71,099 | ||||||
Other long-lived assets | 45,523 | 57,921 | ||||||
Identified intangible assets, net | 38,266 | 44,083 | ||||||
Property, plant and equipment, net | 1,189,921 | 1,241,752 | ||||||
Total assets | $ | 2,913,869 | $ | 2,879,545 | ||||
Accounts payable | $ | 312,365 | $ | 328,864 | ||||
Account payable to JBS USA, LLC | 13,436 | 11,653 | ||||||
Accrued expenses and other current liabilities | 283,540 | 281,797 | ||||||
Income taxes payable | 468 | - | ||||||
Current deferred tax liabilities | 104,482 | 79,248 | ||||||
Current maturities of long-term debt | 15,886 | 15,611 | ||||||
Total current liabilities | 730,177 | 717,173 | ||||||
Long-term debt, less current maturities | 1,148,870 | 1,408,001 | ||||||
Note payable to JBS USA Holdings, Inc. | - | 50,000 | ||||||
Other long-term liabilities | 125,825 | 145,941 | ||||||
Total liabilities | 2,004,872 | 2,321,115 | ||||||
Common stock | 2,590 | 2,143 | ||||||
Additional paid-in capital | 1,642,003 | 1,443,484 | ||||||
Accumulated deficit | (669,711 | ) | (843,945 | ) | ||||
Accumulated other comprehensive loss | (68,511 | ) | (46,070 | ) | ||||
Total Pilgrims Pride Corporation stockholders equity | 906,371 | 555,612 | ||||||
Noncontrolling interest | 2,626 | 2,818 | ||||||
Total stockholders equity | 908,997 | 558,430 | ||||||
Total liabilities and stockholders' equity | $ | 2,913,869 | $ | 2,879,545 |
PILGRIM'S PRIDE
CORPORATION
Consolidated Statements of Operations
Three Months Ended | Twelve Months Ended | |||||||||||||||
December 30 | December 25 | December 30 | December 25 | |||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
(In thousands) | (In thousands) | |||||||||||||||
Net sales | $ | 2,189,661 | $ | 1,829,308 | $ | 8,121,382 | $ | 7,535,698 | ||||||||
Costs and expenses: | ||||||||||||||||
Cost of sales | 2,114,118 | 1,809,120 | 7,685,550 | 7,675,277 | ||||||||||||
Operational restructuring charges | - | - | - | 1,958 | ||||||||||||
Gross profit (loss) | 75,543 | 20,188 | 435,832 | (141,537 | ) | |||||||||||
Selling, general and administrative expense | 45,564 | 48,652 | 177,041 | 205,143 | ||||||||||||
Administrative restructuring charges, net | 2,528 | 14,589 | 8,449 | 26,911 | ||||||||||||
Operating income (loss) | 27,451 | (43,053 | ) | 250,342 | (373,591 | ) | ||||||||||
Interest expense | 26,496 | 28,668 | 104,926 | 111,532 | ||||||||||||
Interest income | (511 | ) | (154 | ) | (1,397 | ) | (1,465 | ) | ||||||||
Foreign currency transaction losses (gains) | 607 | 1,366 | (4,810 | ) | 12,601 | |||||||||||
Miscellaneous, net | (1,167 | ) | (2,896 | ) | (1,439 | ) | (9,133 | ) | ||||||||
Income (loss) before income taxes | 2,026 | (70,037 | ) | 153,062 | (487,126 | ) | ||||||||||
Income tax expense (benefit) | (20,324 | ) | 15,026 | (20,980 | ) | 8,564 | ||||||||||
Net income (loss) | 22,350 | (85,063 | ) | 174,042 | (495,690 | ) | ||||||||||
Less: Net income (loss) attributable to | ||||||||||||||||
noncontrolling interests | (423 | ) | 292 | (192 | ) | 1,082 | ||||||||||
Net income (loss) attributable to | ||||||||||||||||
Pilgrims Pride Corporation | $ | 22,773 | $ | (85,355 | ) | $ | 174,234 | $ | (496,772 | ) | ||||||
Weighted average shares of common stock | ||||||||||||||||
outstanding: | ||||||||||||||||
Basic | 258,726 | 224,996 | 250,101 | 214,282 | ||||||||||||
Diluted | 258,887 | 224,996 | 250,216 | 214,282 | ||||||||||||
Net income (loss) per share of common stock | ||||||||||||||||
outstanding: | ||||||||||||||||
Basic | $ | 0.09 | $ | (0.40 | ) | $ | 0.70 | $ | (2.21 | ) | ||||||
Diluted | $ | 0.09 | $ | (0.40 | ) | $ | 0.70 | $ | (2.21 | ) |
PILGRIM'S PRIDE
CORPORATION
Consolidated Statements of Cash Flows
Twelve Months Ended | ||||||||
December 30 | December 25 | |||||||
2012 | 2011 | |||||||
(In thousands) | ||||||||
Cash flows from operating activities: | ||||||||
Net income (loss) | $ | 174,042 | $ | (495,690 | ) | |||
Adjustments to reconcile net income (loss) attributable to Pilgrims Pride | ||||||||
Corporation to cash provided by (used in) operating activities: | ||||||||
Depreciation and amortization | 147,414 | 209,061 | ||||||
Asset impairment | 2,770 | 22,895 | ||||||
Foreign currency transaction losses (gains) | (5,261 | ) | 9,980 | |||||
Accretion of bond discount | 456 | 453 | ||||||
Gain on property disposals | 5,306 | (4,271 | ) | |||||
Share-based compensation | 684 | 567 | ||||||
Deferred income tax benefit | (1.098 | ) | (7,097 | ) | ||||
Changes in operating assets and liabilities: | ||||||||
Restricted cash and cash equivalents | 12,680 | 53,273 | ||||||
Trade accounts and other receivables | (14,137 | ) | (63,987 | ) | ||||
Inventories | (65,870 | ) | 122,827 | |||||
Prepaid expenses and other current assets | (2,600 | ) | 27,068 | |||||
Accounts payable and accrued expenses | (16,520 | ) | (7,274 | ) | ||||
Income taxes | (33,714 | ) | 4,683 | |||||
Deposits | 1,783 | 2,174 | ||||||
Long-term pension and other postretirement obligations | (2,700 | ) | | |||||
Other | (3,611 | ) | (3,653 | ) | ||||
Cash provided by (used in) operating activities | 199,624 | (128,991 | ) | |||||
Cash flows from investing activities: | ||||||||
Acquisitions of property, plant and equipment | (90,327 | ) | (135,968 | ) | ||||
Purchases of investment securities | (162 | ) | (4,596 | ) | ||||
Proceeds from sale or maturity of investment securities | 688 | 15,852 | ||||||
Proceeds from business disposition to Swift Pork Company | | 13,000 | ||||||
Proceeds from business disposition to JBS Trading International, Inc. | | 24,479 | ||||||
Proceeds from property sales and disposals | 29,400 | 29,044 | ||||||
Cash used in investing activities | (60,401 | ) | (58,189 | ) | ||||
Cash flows from financing activities: | ||||||||
Payments on notes payable to JBS USA | (50,000 | ) | | |||||
Proceeds from notes payable to JBS USA | | 50,000 | ||||||
Proceeds from long-term debt | 851,400 | 965,689 | ||||||
Payments on long-term debt | (1,110,711 | ) | (881,833 | ) | ||||
Proceeds from sale of common stock | 198,282 | | ||||||
Purchase of remaining interest in subsidiary | | (2,504 | ) | |||||
Payment of capitalized loan costs | | (4,395 | ) | |||||
Other financing activities | | (107 | ) | |||||
Cash provided by (used in) financing activities | (111,029 | ) | 126,850 | |||||
Effect of exchange rate changes on cash and cash equivalents | (1,623 | ) | (4,138 | ) | ||||
Increase (decrease) in cash and cash equivalents | 26,571 | (64,468 | ) | |||||
Cash and cash equivalents, beginning of period | 41,609 | 106,077 | ||||||
Cash and cash equivalents, end of period | 68,180 | 41,609 |
PILGRIM'S PRIDE
CORPORATION
Selected Financial Information
(Unaudited)
NOTE: 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 management 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 Companys 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.
Three Months Ended | Twelve Months Ended | |||||||||||||||
December 30 | December 25 | December 30 | December 25 | |||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
(In thousands) | (In thousands) | |||||||||||||||
Net income (loss) from continuing | $ | 22,350 | $ | (85,063 | ) | $ | 174,042 | $ | (495,690 | ) | ||||||
Add: | ||||||||||||||||
Income tax expense (benefit) | (20,325 | ) | 15,026 | (20,980 | ) | 8,564 | ||||||||||
Interest expense, net | 25,985 | 28,514 | 103,529 | 110,067 | ||||||||||||
Depreciation and amortization | 39,088 | 52,355 | 147,414 | 211,780 | ||||||||||||
Minus: | ||||||||||||||||
Amortization of capitalized loan costs | 2,658 | 2,515 | 10,063 | 9,522 | ||||||||||||
EBITDA | 64,439 | 8,317 | 393,941 | (174,801 | ) | |||||||||||
Add: | ||||||||||||||||
Restructuring charges | 2,528 | 14,589 | 8,449 | 30,634 | ||||||||||||
Minus: | ||||||||||||||||
Net income (loss) attributable to | ||||||||||||||||
noncontrolling interests | (423 | ) | 292 | (192 | ) | 1,082 | ||||||||||
Adjusted EBITDA | $ | 67,391 | $ | 22,614 | $ | 402,583 | $ | (145,249 | ) |
PILGRIM'S PRIDE CORPORATION
Supplementary Selected Segment and Geographic Data
Twelve Months Ended | ||||||||||||||
December 30 | December 25 | |||||||||||||
2012 | 2011 | |||||||||||||
Net sales to customers by country of origin: | (In thousands) | |||||||||||||
US: | ||||||||||||||
Prepared chicken | $ | 2,239,289 | $ | 2,135,337 | ||||||||||
Fresh chicken | 3,583,854 | 3,160,429 | ||||||||||||
Export and other chicken by-products | 817,723 | 808,038 | ||||||||||||
Other products | 608,619 | 674,923 | ||||||||||||
Total US net sales: | 7,249,485 | 6,778,727 | ||||||||||||
Mexico: | ||||||||||||||
Chicken | 758,023 | 720,333 | ||||||||||||
Other products | 113,874 | 36,638 | ||||||||||||
Total Mexico net sales | 871,897 | 756,971 | ||||||||||||
Total net sales | $ | 8,121,382 | $ | 7,535,698 | ||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||
December 30 | December 25 | December 30 | December 25 | |||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||
(In thousands) | (In thousands) | |||||||||||||
Net sales to customers by country of origin: | ||||||||||||||
US: | $ | 1,937,207 | $ | 1,645,434 | $ | 7,249,485 | $ | 6,778,727 | ||||||
Mexico: | 252,455 | 183,874 | 871,897 | 756,971 | ||||||||||
Total net sales | $ | 2,189,662 | $ | 1,829,308 | $ | 8,121,382 | $ | 7,535,698 | ||||||
Cost of sales by country of origin: | ||||||||||||||
US: | $ | 1,893,170 | $ | 1,621,653 | $ | 6,916,874 | $ | 6,936,970 | ||||||
Mexico: | 220,949 | 187,467 | 768,676 | 738,307 | ||||||||||
Total net sales | $ | 2,114,119 | $ | 1,809,120 | $ | 7,685,550 | $ | 7,675,277 | ||||||
Components of gross profit | ||||||||||||||
US: | $ | 44,037 | $ | 23,781 | $ | 332,611 | $ | (158,243 | ) | |||||
US - Operational Restructuring: | - | - | - | (3,304 | ) | |||||||||
Mexico: | 31,506 | (3,593 | ) | 103,221 | 18,663 | |||||||||
Total net sales | $ | 75,543 | $ | 20,188 | $ | 435,832 | $ | (142,884 | ) |