2014_Q4_PPC Cover


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 11, 2015
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 11, 2015 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 11, 2015






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 11, 2015
 
/s/ Fabio Sandri
 
 
 
Fabio Sandri
 
 
 
Chief Financial Officer

Exhibit Index
Exhibit 99.1    Press release dated February 11, 2015


2014_Q4_PPC Earnings Release - 01




Pilgrim’s Pride Reports Operating Income of $329 Million with a Margin of 15.5% for the Fourth Quarter of 2014, and $1,203 Million with a Margin of 14.0% for the Full Year

GREELEY, Colo., February 11, 2015 (GLOBE NEWSWIRE) - Pilgrim’s Pride Corporation (NASDAQ: PPC) reports fourth quarter 2014 financial results with Net Sales of $2.11 billion for the thirteen week period, as compared to $2.05 billion for the fourteen week period in 2013. Net Income of $167.2 million reflected $48 million adjustment due to the early retirement of the 2018 notes and a non-cash foreign exchange loss due to the Peso devaluation. The 2014 net income reflects an improvement of 17% compared to the $143.4 million reported in the same period in 2013. Adjusted Earnings Per Share reached $0.83 in the fourth quarter of 2014 compared to $0.55 in the same period last year, while adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (“EBITDA”) of $367.8 million increased 86% compared to the $196.6 million generated in the prior year.

For the full 2014 fiscal year, Pilgrim’s recorded $8.58 billion in Net Sales and $1,352 million of adjusted EBITDA, a 15.8% margin. Pilgrim’s recognized $711.7 million in Net Income for the full year with Earnings Per Share of $2.74, demonstrating consistently solid performance over the entire year.

“Though pleased with our results for 2014 and our team members deserve full credit, we will not be complacent. We continue driving ownership and accountability deeper in our company, and we are developing new tools and methods to improve our efficiency, sales mix, and margin,” stated Bill Lovette, Chief Executive Officer of Pilgrim's.

“Given our strong cash flow generation, earlier last month we announced a special dividend payment of $5.77 per share, which is a sign of confidence in the future, as well as proof of a promise we made to generate shareholder value while optimizing the company’s capital structure.”

“We see 2015 as yet another opportunity for our team to create shareholder value through serving our key customers, relentless pursuit of operational excellence, and growing value added exports. As we begin the year, demand for chicken continues to be strong, outpacing supply, and with the improvements we’ve implemented, Pilgrim’s is ideally situated to reap the benefits.”

Conference Call Information
A conference call to discuss Pilgrim’s quarterly results will be held tomorrow, February 12, at 7:00 a.m. MDT (9 a.m. EDT). 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/ppc150212.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 “Pilgrim’s 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 Pilgrim’s 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 12, 2015.

About Pilgrim’s Pride

Pilgrim’s Pride Corporation employs approximately 35,000 people and operates chicken processing plants and prepared-foods facilities in 12 states, Puerto Rico and Mexico. The Company’s 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 Pilgrim’s 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 Company’s business plan to achieve desired cost savings and profitability; future pricing for feed ingredients and the Company’s products; outbreaks of avian influenza or other diseases, either in Pilgrim’s Pride’s flocks or elsewhere, affecting its ability to conduct its operations and/or demand for its poultry products; contamination of Pilgrim’s Pride’s 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, Pilgrim’s Pride’s leverage; changes in laws or regulations affecting Pilgrim’s Pride’s 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 Pilgrim’s 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 Pilgrim’s Pride’s 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 Company’s Annual Report on Form 10-K and subsequent filings with the Securities and Exchange Commission. Pilgrim’s 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:
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
Selected Financial Information
(Unaudited)

“EBITDA” is defined as the sum of net income (loss) plus interest, taxes, depreciation and amortization. “Adjusted EBITDA” is calculated by adding to EBITDA certain items of expense and deducting from EBITDA certain items of income that we believe are not indicative of our ongoing operating performance consisting of: (i) income (loss) attributable to non-controlling interests, (ii) restructuring charges, (iii) reorganization items, (iv) losses on early extinguishment of debt and (v) foreign currency transaction losses (gains). 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. 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.

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







The summary unaudited consolidated income statement data for the twelve months ended December 28, 2014 (the LTM Period) have been calculated by summing each of the unaudited thirteen week periods within the audited fifty-two week period ended December 28, 2014.

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







A reconciliation of net income (loss) attributable to Pilgrim's Pride Corporation per common diluted share to adjusted net income (loss) attributable to Pilgrim's Pride Corporation per common diluted share is as follows:
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







Net debt is defined as total long term debt less current maturities, plus current maturities of long term debt, minus cash, cash equivalents and investments in available-for-sale securities.  Net debt is presented because it is used by management, and we believe it is frequently used by securities analysts, investors and other parties, in addition to and not in lieu of debt as presented under GAAP, to compare the indebtedness of companies.  A reconciliation of net debt is as follows:
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


Additional Disclosure on Controls and Procedures

During its annual SOX evaluation, the company identified that selected information technology individuals were granted broad access to applications and data without documented supervision, constituting a deficiency in internal controls.  The control deficiency did not impact financial reporting or results, and the company promptly developed and implemented a plan to enhance its security processes to ensure that such access is properly assigned and supervised.