FORM 8-K |
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) |
PILGRIM’S PRIDE CORPORATION | |||
Date: | February 11, 2015 | /s/ Fabio Sandri | |
Fabio Sandri | |||
Chief Financial Officer |
Contact: | Dunham Winoto |
Pilgrim's Pride Corporation Investor Relations | |
IRPPC@pilgrims.com | |
(970) 506 8192 | |
www.pilgrims.com |
PILGRIM’S PRIDE CORPORATION | ||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
December 28, 2014 | December 29, 2013 | |||||||
(Unaudited) | ||||||||
(In thousands) | ||||||||
Cash and cash equivalents | $ | 576,143 | $ | 508,206 | ||||
Investment in available-for-sale securities | — | 96,902 | ||||||
Trade accounts and other receivables, less allowance for doubtful accounts | 378,890 | 376,678 | ||||||
Account receivable from JBS USA, LLC | 5,250 | 2,388 | ||||||
Inventories | 790,305 | 808,832 | ||||||
Income taxes receivable | 10,288 | 64,868 | ||||||
Current deferred tax assets | 27,345 | 2,227 | ||||||
Prepaid expenses and other current assets | 95,439 | 61,848 | ||||||
Assets held for sale | 1,419 | 7,033 | ||||||
Total current assets | 1,885,079 | 1,928,982 | ||||||
Deferred tax assets | — | 18,921 | ||||||
Other long-lived assets | 24,406 | 40,163 | ||||||
Identified intangible assets, net | 26,783 | 32,525 | ||||||
Property, plant and equipment, net | 1,182,795 | 1,151,811 | ||||||
Total assets | $ | 3,119,063 | $ | 3,172,402 | ||||
Accounts payable | $ | 399,486 | $ | 370,360 | ||||
Account payable to JBS USA, LLC | 4,862 | 3,934 | ||||||
Accrued expenses and other current liabilities | 311,879 | 283,355 | ||||||
Income taxes payable | 3,068 | — | ||||||
Current deferred tax liabilities | 25,301 | 15,515 | ||||||
Current maturities of long-term debt | 262 | 410,234 | ||||||
Total current liabilities | 744,858 | 1,083,398 | ||||||
Long-term debt, less current maturities | 3,980 | 501,999 | ||||||
Deferred tax liabilities | 76,216 | 13,944 | ||||||
Other long-term liabilities | 97,208 | 80,459 | ||||||
Total liabilities | 922,262 | 1,679,800 | ||||||
Common stock | 2,590 | 2,590 | ||||||
Additional paid-in capital | 1,662,354 | 1,653,119 | ||||||
Retained earnings (accumulated deficit) | 591,492 | (120,156 | ) | |||||
Accumulated other comprehensive loss | (62,541 | ) | (45,735 | ) | ||||
Total Pilgrim’s Pride Corporation stockholders’ equity | 2,193,895 | 1,489,818 | ||||||
Noncontrolling interest | 2,906 | 2,784 | ||||||
Total stockholders’ equity | 2,196,801 | 1,492,602 | ||||||
Total liabilities and stockholders’ equity | $ | 3,119,063 | $ | 3,172,402 |
PILGRIM’S PRIDE CORPORATION | ||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Thirteen Weeks Ended | Fifty-Two Weeks Ended | |||||||||||||||
December 28, 2014 | December 29, 2013 | December 28, 2014 | December 29, 2013 | |||||||||||||
(In thousands, except per share data) | ||||||||||||||||
Net sales | $ | 2,110,436 | $ | 2,047,285 | $ | 8,583,365 | $ | 8,411,148 | ||||||||
Cost of sales | 1,731,287 | 1,839,361 | 7,189,370 | 7,565,709 | ||||||||||||
Gross profit | 379,149 | 207,924 | 1,393,995 | 845,439 | ||||||||||||
Selling, general and administrative expense | 50,157 | 49,027 | 188,594 | 180,915 | ||||||||||||
Administrative restructuring charges | — | 1,039 | 2,286 | 5,661 | ||||||||||||
Operating income | 328,992 | 157,858 | 1,203,115 | 658,863 | ||||||||||||
Interest expense, net of capitalized interest | 36,690 | 18,807 | 82,097 | 87,006 | ||||||||||||
Interest income | (1,852 | ) | (631 | ) | (4,826 | ) | (2,125 | ) | ||||||||
Foreign currency transaction loss (gain) | 23,047 | (356 | ) | 27,979 | 4,415 | |||||||||||
Miscellaneous, net | (1,917 | ) | (3,643 | ) | (4,526 | ) | (4,373 | ) | ||||||||
Income before income taxes | 273,024 | 143,681 | 1,102,391 | 573,940 | ||||||||||||
Income tax expense | 106,021 | 11 | 390,953 | 24,227 | ||||||||||||
Net income | 167,003 | 143,670 | 711,438 | 549,713 | ||||||||||||
Less: Net income (loss) attributable to noncontrolling interests | (184 | ) | 319 | (210 | ) | 158 | ||||||||||
Net income attributable to Pilgrim’s Pride Corporation | $ | 167,187 | $ | 143,351 | $ | 711,648 | $ | 549,555 | ||||||||
Weighted average shares of common stock outstanding: | ||||||||||||||||
Basic | 258,999 | 258,726 | 258,974 | 258,826 | ||||||||||||
Effect of dilutive common stock equivalents | 544 | 740 | 497 | 415 | ||||||||||||
Diluted | 259,543 | 259,466 | 259,471 | 259,241 | ||||||||||||
Net income attributable to Pilgrim's Pride Corporation per share of common stock outstanding: | ||||||||||||||||
Basic | $ | 0.65 | $ | 0.55 | $ | 2.75 | $ | 2.12 | ||||||||
Diluted | $ | 0.64 | $ | 0.55 | $ | 2.74 | $ | 2.12 |
PILGRIM’S PRIDE CORPORATION AND SUBSIDIARIES | |||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||||
(Unaudited) | |||||||||
Fifty-Two Weeks Ended | |||||||||
December 28, 2014 | December 29, 2013 | ||||||||
(In thousands) | |||||||||
Cash flows from operating activities: | |||||||||
Net income | $ | 711,438 | $ | 549,713 | |||||
Adjustments to reconcile net income to cash provided by operating activities: | |||||||||
Depreciation and amortization | 155,824 | 150,523 | |||||||
Asset impairment | — | 4,004 | |||||||
Foreign currency transaction losses | 38,129 | 3,382 | |||||||
Accretion of bond discount | 2,243 | 456 | |||||||
Gain on property disposals | (1,407 | ) | 2,395 | ||||||
Gain on investment securities | — | — | |||||||
Share-based compensation | 4,928 | 3,345 | |||||||
Deferred income tax benefit | 78,943 | (4,999 | ) | ||||||
Changes in operating assets and liabilities: | |||||||||
Trade accounts and other receivables | (9,526 | ) | 7,235 | ||||||
Inventories | 10,638 | 142,675 | |||||||
Prepaid expenses and other current assets | (38,010 | ) | (6,070 | ) | |||||
Accounts payable, accrued expenses and other current liabilities | 44,833 | 49,625 | |||||||
Income taxes | 74,705 | (21,546 | ) | ||||||
Deposits | — | 1,877 | |||||||
Long-term pension and other postretirement obligations | (5,784 | ) | (6,837 | ) | |||||
Other operating assets and liabilities | (262 | ) | 2,755 | ||||||
Cash provided by operating activities | 1,066,692 | 878,533 | |||||||
Cash flows from investing activities: | |||||||||
Acquisitions of property, plant and equipment | (171,443 | ) | (116,223 | ) | |||||
Purchases of investment securities | (55,100 | ) | (96,902 | ) | |||||
Proceeds from sale or maturity of investment securities | 152,050 | — | |||||||
Proceeds from property disposals | 11,108 | 31,337 | |||||||
Cash provided by (used in) investing activities | (63,385 | ) | (181,788 | ) | |||||
Cash flows from financing activities: | |||||||||
Proceeds from revolving line of credit | — | 505,600 | |||||||
Payments on revolving line of credit, long-term borrowings and capital lease obligations | (910,234 | ) | (758,578 | ) | |||||
Sale of subsidiary common stock | 332 | — | |||||||
Proceeds from equity contribution under Tax Sharing Agreement between JBS USA Holdings Inc. and Pilgrim's Pride Corporation | 3,849 | — | |||||||
Tax benefit related to share-based compensation | 458 | 7,771 | |||||||
Payment of capitalized loan costs | — | (5,007 | ) | ||||||
Cash used in financing activities | (905,595 | ) | (250,214 | ) | |||||
Effect of exchange rate changes on cash and cash equivalents | (29,775 | ) | (6,505 | ) | |||||
Increase (decrease) in cash and cash equivalents | 67,937 | 440,026 |
Cash and cash equivalents, beginning of period | 508,206 | 68,180 | |||||||
Cash and cash equivalents, end of period | $ | 576,143 | $ | 508,206 | |||||
Supplemental Disclosure Information: | |||||||||
Interest paid (net of amount capitalized) | 71,558,000 | $ | 71,558 | $ | 80,320 | ||||
Income taxes paid | 257,152,000 | $ | 257,152 | $ | 30,057 |
PILGRIM'S PRIDE CORPORATION | ||||||||||||||||
Reconciliation of Adjusted EBITDA | ||||||||||||||||
(Unaudited) | Thirteen Weeks Ended | Fifty-Two Weeks Ended | ||||||||||||||
December 28, 2014 | December 29, 2013 | December 28, 2014 | December 29, 2013 | |||||||||||||
(In thousands) | ||||||||||||||||
Net income from continuing operations | $ | 167,003 | $ | 143,670 | $ | 711,438 | $ | 549,713 | ||||||||
Add: | ||||||||||||||||
Interest expense, net | 34,838 | 18,176 | 77,271 | 84,881 | ||||||||||||
Income tax expense (benefit) | 106,021 | 11 | 390,953 | 24,227 | ||||||||||||
Depreciation and amortization | 43,084 | 36,464 | 155,824 | 150,317 | ||||||||||||
Asset impairments | 361 | |||||||||||||||
Minus: | ||||||||||||||||
Amortization of capitalized financing costs | 6,348 | 2,069 | 13,712 | 9,307 | ||||||||||||
EBITDA | 344,598 | 196,252 | 1,321,774 | 800,192 | ||||||||||||
Add: | ||||||||||||||||
Foreign currency transaction losses (gains) | 23,047 | (356 | ) | 27,979 | 4,415 | |||||||||||
Restructuring charges | — | 1,039 | 2,286 | 5,661 | ||||||||||||
Minus: | ||||||||||||||||
Net income (loss) attributable to noncontrolling interest | (184 | ) | 319 | (210 | ) | 158 | ||||||||||
Adjusted EBITDA | $ | 367,829 | $ | 196,616 | $ | 1,352,249 | $ | 810,110 |
PILGRIM'S PRIDE CORPORATION | ||||||||||||||||||||
Reconciliation of Adjusted EBITDA | ||||||||||||||||||||
(Unaudited) | Thirteen Weeks Ended | Thirteen Weeks Ended | Thirteen Weeks Ended | Thirteen Weeks Ended | LTM Ended | |||||||||||||||
March 30, 2014 | June 29, 2014 | September 28, 2014 | December 28, 2014 | December 28, 2014 | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Net income from continuing operations | $ | 98,187 | $ | 190,445 | $ | 255,803 | $ | 167,003 | $ | 711,438 | ||||||||||
Add: | ||||||||||||||||||||
Interest expense, net | 18,662 | 13,570 | 10,201 | 34,838 | 77,271 | |||||||||||||||
Income tax expense (benefit) | 52,012 | 99,227 | 133,693 | 106,021 | 390,953 | |||||||||||||||
Depreciation and amortization | 38,261 | 38,261 | 36,218 | 43,084 | 155,824 | |||||||||||||||
Asset impairments | — | — | — | — | — | |||||||||||||||
Minus: | ||||||||||||||||||||
Amortization of capitalized financing costs | 3,587 | 2,906 | 871 | 6,348 | 13,712 | |||||||||||||||
EBITDA | 203,535 | 338,597 | 435,044 | 344,598 | 1,321,774 | |||||||||||||||
Add: | ||||||||||||||||||||
Foreign currency transaction losses (gains) | 336 | (1,819 | ) | 6,414 | 23,048 | 27,979 | ||||||||||||||
Restructuring charges | 1,713 | 438 | 135 | — | 2,286 | |||||||||||||||
Minus: | ||||||||||||||||||||
Net income (loss) attributable to noncontrolling interest | 70 | 85 | (181 | ) | (184 | ) | (210 | ) | ||||||||||||
Adjusted EBITDA | $ | 205,514 | $ | 337,131 | $ | 441,774 | $ | 367,830 | $ | 1,352,249 |
PILGRIM'S PRIDE CORPORATION | ||||||||||||||||||||||||||||||||
Reconciliation of EBITDA Margin | ||||||||||||||||||||||||||||||||
(Unaudited) | Thirteen Weeks Ended | Fifty-Two Weeks Ended | Thirteen Weeks Ended | Fifty-Two Weeks Ended | ||||||||||||||||||||||||||||
December 28, 2014 | December 29, 2013 | December 28, 2014 | December 29, 2013 | December 28, 2014 | December 29, 2013 | December 28, 2014 | December 29, 2013 | |||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
Net income from continuing operations | $ | 167,003 | $ | 143,670 | $ | 711,438 | $ | 549,713 | 7.91 | % | 7.02 | % | 8.29 | % | 6.54 | % | ||||||||||||||||
Add: | ||||||||||||||||||||||||||||||||
Interest expense, net | 34,838 | 18,176 | 77,271 | 84,881 | 1.65 | % | 0.89 | % | 0.90 | % | 1.01 | % | ||||||||||||||||||||
Income tax expense (benefit) | 106,021 | 11 | 390,953 | 24,227 | 5.02 | % | — | % | 4.55 | % | 0.29 | % | ||||||||||||||||||||
Depreciation and amortization | 43,084 | 36,464 | 155,824 | 150,317 | 2.04 | % | 1.78 | % | 1.82 | % | 1.79 | % | ||||||||||||||||||||
Asset impairments | — | — | — | 361 | — | % | — | % | — | % | — | % | ||||||||||||||||||||
Minus: | — | % | — | % | — | % | — | % | ||||||||||||||||||||||||
Amortization of capitalized financing costs | 6,348 | 2,069 | 13,712 | 9,307 | 0.30 | % | 0.10 | % | 0.16 | % | 0.11 | % | ||||||||||||||||||||
EBITDA | 344,598 | 196,252 | 1,321,774 | 800,192 | 16.33 | % | 9.59 | % | 15.40 | % | 9.51 | % | ||||||||||||||||||||
Add: | ||||||||||||||||||||||||||||||||
Foreign currency transaction losses (gains) | 23,047 | (356 | ) | 27,979 | 4,415 | 1.09 | % | (0.02 | )% | 0.33 | % | 0.05 | % | |||||||||||||||||||
Restructuring charges | — | 1,039 | 2,286 | 5,661 | — | % | 0.05 | % | 0.03 | % | 0.07 | % | ||||||||||||||||||||
Minus: | ||||||||||||||||||||||||||||||||
Net income (loss) attributable to noncontrolling interest | (184 | ) | 319 | (210 | ) | 158 | (0.01 | )% | 0.02 | % | — | % | — | % | ||||||||||||||||||
Adjusted EBITDA | $ | 367,829 | $ | 196,616 | $ | 1,352,249 | $ | 810,110 | 17.43 | % | 9.60 | % | 15.75 | % | 9.63 | % | ||||||||||||||||
Net Revenue: | $ | 2,110,436 | $ | 2,047,285 | $ | 8,583,365 | $ | 8,411,148 | $ | 2,110,436 | $ | 2,047,285 | $ | 8,583,365 | $ | 8,411,148 |
PILGRIM'S PRIDE CORPORATION | |||||||||||||||
Reconciliation of Adjusted Earnings | |||||||||||||||
(Unaudited) | |||||||||||||||
Thirteen Weeks Ended | Fifty-Two Weeks Ended | ||||||||||||||
December 28, 2014 | December 29, 2013 | December 28, 2014 | December 29, 2013 | ||||||||||||
(In thousands) | |||||||||||||||
Net income (loss) attributable to Pilgrim's Pride Corporation | $ | 167,003 | $ | 143,670 | $ | 711,648 | $ | 549,555 | |||||||
Loss on early extinguishment of debt | 25,271 | — | 29,475 | — | |||||||||||
Foreign currency transaction losses (gains) | 23,047 | (356 | ) | 27,979 | 4,415 | ||||||||||
Income (loss) before loss on early extinguishment of debt and foreign currency transaction losses (gains) | 215,321 | 143,314 | 769,102 | 553,970 | |||||||||||
Weighted average diluted shares of common stock outstanding | 259,543 | 259,466 | 259,471 | 259,241 | |||||||||||
Income (loss) before loss on early extinguishment of debt per common diluted share | $ | 0.83 | $ | 0.55 | $ | 2.96 | $ | 2.14 |
PILGRIM'S PRIDE CORPORATION | |||||||||||||
Reconciliation of Net Debt | |||||||||||||
(Unaudited) | |||||||||||||
2012 | 2013 | 2014 | |||||||||||
(in thousands) | |||||||||||||
Long term debt, less current maturities | $ | 1,148,870 | $ | 501,999 | $ | 3,980 | |||||||
Add: Current maturities of long term debt | 15,886 | 410,234 | 262 | ||||||||||
Minus: Cash and cash equivalents | 68,180 | 508,206 | 576,143 | ||||||||||
Minus: Available-for-sale Securities | — | 96,902 | — | ||||||||||
Net debt (Cash position) | $ | 1,096,576 | $ | 307,125 | $ | (571,901 | ) |
PILGRIM'S PRIDE CORPORATION | |||||||||||||||
Supplementary Selected Segment and Geographic Data | |||||||||||||||
Thirteen Weeks Ended | Fifty-Two Weeks Ended | ||||||||||||||
December 28, 2014 | December 29, 2013 | December 28, 2014 | December 29, 2013 | ||||||||||||
(In thousands) | |||||||||||||||
(Unaudited) | |||||||||||||||
Sources of net sales by country of origin: | |||||||||||||||
US: | $ | 1,888,333 | $ | 1,837,221 | $ | 7,647,036 | $ | 7,500,212 | |||||||
Mexico: | 222,103 | 210,064 | 936,329 | 910,936 | |||||||||||
Total net sales: | $ | 2,110,435 | $ | 2,047,285 | $ | 8,583,365 | $ | 8,411,148 | |||||||
Sources of cost of sales by country of origin: | |||||||||||||||
US: | $ | 1,544,148 | $ | 1,643,345 | 6,444,234 | $ | 6,783,228 | ||||||||
Mexico: | 187,139 | 196,016 | 745,136 | 782,481 | |||||||||||
Total cost of sales: | $ | 1,731,287 | $ | 1,839,361 | $ | 7,189,370 | $ | 7,565,709 | |||||||
Sources of gross profit by country of origin: | |||||||||||||||
US: | $ | 344,185 | $ | 193,876 | $ | 1,202,802 | $ | 716,984 | |||||||
Mexico: | 34,964 | 14,048 | 191,193 | 128,455 | |||||||||||
Total gross profit: | $ | 379,149 | $ | 207,924 | $ | 1,393,995 | $ | 845,439 |