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 10, 2016 | /s/ Fabio Sandri | |
Fabio Sandri | |||
Chief Financial Officer |
Contact: | Dunham Winoto |
Director, Investor Relations | |
IRPPC@pilgrims.com | |
(970) 506-8192 | |
www.pilgrims.com |
PILGRIM’S PRIDE CORPORATION | ||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
December 27, 2015 | December 28, 2014 | |||||||
(Unaudited) | ||||||||
(In thousands) | ||||||||
Cash and cash equivalents | $ | 439,638 | $ | 576,143 | ||||
Investment in available-for-sale securities | — | — | ||||||
Trade accounts and other receivables, less allowance for doubtful accounts | 348,994 | 378,890 | ||||||
Account receivable from related parties | 2,668 | 5,250 | ||||||
Inventories | 801,357 | 790,305 | ||||||
Income taxes receivable | 71,410 | 10,288 | ||||||
Prepaid expenses and other current assets | 75,602 | 95,439 | ||||||
Assets held for sale | 6,555 | 1,419 | ||||||
Total current assets | 1,746,224 | 1,857,734 | ||||||
Other long-lived assets | 15,672 | 24,406 | ||||||
Identified intangible assets, net | 47,453 | 26,783 | ||||||
Goodwill | 156,565 | — | ||||||
Property, plant and equipment, net | 1,352,529 | 1,182,795 | ||||||
Total assets | $ | 3,318,443 | $ | 3,091,718 | ||||
Notes payable to banks | $ | 28,726 | $ | — | ||||
Accounts payable | 482,954 | 399,486 | ||||||
Accounts payable to related parties | 7,000 | 4,862 | ||||||
Accrued expenses | 314,966 | 311,879 | ||||||
Income taxes payable | 13,228 | 3,068 | ||||||
Current maturities of long-term debt | 86 | 262 | ||||||
Total current liabilities | 846,960 | 719,557 | ||||||
Long-term debt, less current maturities | 985,509 | 3,980 | ||||||
Deferred tax liabilities | 131,882 | 74,172 | ||||||
Other long-term liabilities | 92,282 | 97,208 | ||||||
Total liabilities | 2,056,633 | 894,917 | ||||||
Commitments and contingencies | ||||||||
Preferred stock, $.01 par value, 50,000,000 shares authorized; no shares issued | — | — | ||||||
Common stock, $.01 par value, 800,000,000 shares authorized; 259,685,145 and 259,029,033 shares issued at year-end 2015 and year-end 2014, respectively; 254,823,286 and 259,029,033 shares outstanding at year-end 2015 and year-end 2014, respectively | 2,597 | 2,590 | ||||||
Treasury stock, at cost, 4,861,859 shares at year-end 2015 | (99,233 | ) | — | |||||
Additional paid-in capital | 1,675,674 | 1,662,354 | ||||||
Retained earnings (accumulated deficit) | (261,252 | ) | 591,492 | |||||
Accumulated other comprehensive loss | (58,930 | ) | (62,541 | ) | ||||
Total Pilgrim’s Pride Corporation stockholders’ equity | 1,258,856 | 2,193,895 | ||||||
Noncontrolling interest | 2,954 | 2,906 | ||||||
Total stockholders’ equity | 1,261,810 | 2,196,801 | ||||||
Total liabilities and stockholders' equity | $ | 3,318,443 | $ | 3,091,718 |
PILGRIM’S PRIDE CORPORATION | ||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Thirteen Weeks Ended | Fifty-Two Weeks Ended | |||||||||||||||
December 27, 2015 | December 28, 2014 | December 27, 2015 | December 28, 2014 | |||||||||||||
(In thousands, except per share data) | ||||||||||||||||
Net sales | $ | 1,960,780 | $ | 2,110,436 | $ | 8,180,104 | $ | 8,583,365 | ||||||||
Cost of sales | 1,800,087 | 1,731,287 | 6,925,727 | 7,189,370 | ||||||||||||
Gross profit | 160,693 | 379,149 | 1,254,377 | 1,393,995 | ||||||||||||
Selling, general and administrative expense | 52,920 | 50,157 | 203,881 | 188,594 | ||||||||||||
Administrative restructuring charges | — | — | 5,605 | 2,286 | ||||||||||||
Operating income | 107,773 | 328,992 | 1,044,891 | 1,203,115 | ||||||||||||
Interest expense, net of capitalized interest | 10,678 | 36,690 | 37,548 | 82,097 | ||||||||||||
Interest income | (587 | ) | (1,852 | ) | (3,673 | ) | (4,826 | ) | ||||||||
Foreign currency transaction loss (gain) | 2,134 | 23,047 | 25,940 | 27,979 | ||||||||||||
Miscellaneous, net | (547 | ) | (1,917 | ) | (7,682 | ) | (4,526 | ) | ||||||||
Income before income taxes | 96,095 | 273,024 | 992,758 | 1,102,391 | ||||||||||||
Income tax expense | 33,045 | 106,021 | 346,796 | 390,953 | ||||||||||||
Net income | 63,050 | 167,003 | 645,962 | 711,438 | ||||||||||||
Less: Net income (loss) attributable to noncontrolling interests | (98 | ) | (184 | ) | 48 | (210 | ) | |||||||||
Net income attributable to Pilgrim’s Pride Corporation | $ | 63,148 | $ | 167,187 | $ | 645,914 | $ | 711,648 | ||||||||
Weighted average shares of common stock outstanding: | ||||||||||||||||
Basic | 255,216 | 258,999 | 258,442 | 258,974 | ||||||||||||
Effect of dilutive common stock equivalents | 262 | 544 | 234 | 497 | ||||||||||||
Diluted | 255,478 | 259,543 | 258,676 | 259,471 | ||||||||||||
Net income attributable to Pilgrim's Pride Corporation per share of common stock outstanding: | ||||||||||||||||
Basic | $ | 0.25 | $ | 0.65 | $ | 2.50 | $ | 2.75 | ||||||||
Diluted | $ | 0.25 | $ | 0.64 | $ | 2.50 | $ | 2.74 |
PILGRIM’S PRIDE CORPORATION AND SUBSIDIARIES | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(Unaudited) | ||||||||
Fifty-Two Weeks Ended | ||||||||
December 27, 2015 | December 28, 2014 | |||||||
(In thousands) | ||||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 645,962 | $ | 711,438 | ||||
Adjustments to reconcile net income to cash provided by operating activities: | ||||||||
Depreciation and amortization | 158,975 | 155,824 | ||||||
Asset impairment | 4,813 | — | ||||||
Foreign currency transaction losses (gains) | — | 38,129 | ||||||
Accretion of bond discount | — | 2,243 | ||||||
Loss (gain) on property disposals | (10,372 | ) | (1,407 | ) | ||||
Gain on investment securities | — | — | ||||||
Share-based compensation | 2,975 | 4,928 | ||||||
Deferred income tax expense (benefit) | 29,512 | 78,943 | ||||||
Changes in operating assets and liabilities: | ||||||||
Trade accounts and other receivables | 61,294 | (9,526 | ) | |||||
Inventories | 57,078 | 10,638 | ||||||
Prepaid expenses and other current assets | 19,840 | (38,010 | ) | |||||
Accounts payable and accrued expenses | 61,882 | 44,833 | ||||||
Income taxes | (55,428 | ) | 74,705 | |||||
Deposits | — | — | ||||||
Long-term pension and other postretirement obligations | (3,500 | ) | (5,784 | ) | ||||
Other | 3,797 | (262 | ) | |||||
Cash provided by operating activities | 976,828 | 1,066,692 | ||||||
Cash flows from investing activities: | ||||||||
Acquisitions of property, plant and equipment | (175,764 | ) | (171,443 | ) | ||||
Business acquisition | (373,532 | ) | — | |||||
Purchases of investment securities | — | (55,100 | ) | |||||
Proceeds from sale or maturity of investment securities | — | 152,050 | ||||||
Proceeds from property disposals | 14,610 | 11,108 | ||||||
Cash used in investing activities | (534,686 | ) | (63,385 | ) | ||||
Cash flows from financing activities: | ||||||||
Proceeds from notes payable to banks | 28,726 | — | ||||||
Proceeds from long-term debt | 1,680,000 | — | ||||||
Payments on long-term debt | (683,780 | ) | (910,234 | ) | ||||
Proceeds from sale of subsidiary common stock | — | 332 | ||||||
Proceeds from equity contribution under Tax Sharing Agreement between JBS USA Holding, S.à.r.l. and Pilgrim's Pride Corporation | — | 3,849 | ||||||
Tax benefit related to share-based compensation | 6,474 | 458 | ||||||
Payment of capitalized loan costs | (12,364 | ) | — | |||||
Purchase of treasury stock | (99,233 | ) | — | |||||
Payment of special cash dividends | (1,498,470 | ) | — | |||||
Cash used in financing activities | (578,647 | ) | (905,595 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents | — | (29,775 | ) | |||||
Increase in cash and cash equivalents | (136,505 | ) | 67,937 |
Cash and cash equivalents, beginning of period | 576,143 | 508,206 | ||||||
Cash and cash equivalents, end of period | $ | 439,638 | $ | 576,143 | ||||
Supplemental Disclosure Information: | ||||||||
Interest paid (net of amount capitalized) | $ | 24,210 | $ | 71,558 | ||||
Income taxes paid | 360,347 | 257,152 |
PILGRIM'S PRIDE CORPORATION | ||||||||||||||||
Reconciliation of Adjusted EBITDA | ||||||||||||||||
(Unaudited) | Thirteen Weeks Ended | Fifty-Two Weeks Ended | ||||||||||||||
December 27, 2015 | December 28, 2014 | December 27, 2015 | December 28, 2014 | |||||||||||||
(In thousands) | ||||||||||||||||
Net income from continuing operations | $ | 63,050 | $ | 167,003 | $ | 645,962 | $ | 711,438 | ||||||||
Add: | ||||||||||||||||
Interest expense, net | 10,091 | 34,838 | 33,875 | 77,271 | ||||||||||||
Income tax expense (benefit) | 33,045 | 106,021 | 346,796 | 390,953 | ||||||||||||
Depreciation and amortization | 42,490 | 43,084 | 158,975 | 155,824 | ||||||||||||
Minus: | ||||||||||||||||
Amortization of capitalized financing costs | 930 | 6,348 | 3,638 | 13,712 | ||||||||||||
EBITDA | 147,746 | 344,598 | 1,181,970 | 1,321,774 | ||||||||||||
Add: | ||||||||||||||||
Foreign currency transaction losses (gains) | 2,134 | 23,047 | 25,940 | 27,979 | ||||||||||||
Restructuring charges | — | — | 5,605 | 2,286 | ||||||||||||
Minus: | ||||||||||||||||
Net income (loss) attributable to noncontrolling interest | (98 | ) | (184 | ) | 48 | (210 | ) | |||||||||
Adjusted EBITDA | $ | 149,978 | $ | 367,829 | $ | 1,213,467 | $ | 1,352,249 |
PILGRIM'S PRIDE CORPORATION | ||||||||||||||||||||
Reconciliation of LTM Adjusted EBITDA | ||||||||||||||||||||
(Unaudited) | Thirteen Weeks Ended | Thirteen Weeks Ended | Thirteen Weeks Ended | Thirteen Weeks Ended | LTM Ended | |||||||||||||||
March 29, 2015 | June 28, 2015 | September 27, 2015 | December 27, 2015 | December 27, 2015 | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Net income from continuing operations | $ | 204,193 | $ | 241,624 | $ | 137,095 | $ | 63,050 | $ | 645,962 | ||||||||||
Add: | ||||||||||||||||||||
Interest expense, net | 3,365 | 10,237 | 10,182 | 10,091 | 33,875 | |||||||||||||||
Income tax expense (benefit) | 111,494 | 129,104 | 73,153 | 33,045 | 346,796 | |||||||||||||||
Depreciation and amortization | 36,152 | 38,918 | 41,415 | 42,490 | 158,975 | |||||||||||||||
Asset impairments | — | — | — | — | — | |||||||||||||||
Minus: | ||||||||||||||||||||
Amortization of capitalized financing costs | 725 | 864 | 1,119 | 930 | 3,638 | |||||||||||||||
EBITDA | 354,479 | 419,019 | 260,726 | 147,746 | 1,181,970 | |||||||||||||||
Add: | ||||||||||||||||||||
Foreign currency transaction losses (gains) | 8,974 | 2,059 | 12,773 | 2,134 | 25,940 | |||||||||||||||
Restructuring charges | — | 4,813 | 792 | — | 5,605 | |||||||||||||||
Minus: | ||||||||||||||||||||
Net income (loss) attributable to noncontrolling interest | (22 | ) | 135 | 33 | (98 | ) | 48 | |||||||||||||
Adjusted EBITDA | $ | 363,475 | $ | 425,756 | $ | 274,258 | $ | 149,978 | $ | 1,213,467 |
PILGRIM'S PRIDE CORPORATION | ||||||||||||||||||||||||||||||||
Reconciliation of EBITDA Margin | ||||||||||||||||||||||||||||||||
(Unaudited) | Thirteen Weeks Ended | Fifty-Two Weeks Ended | Thirteen Weeks Ended | Fifty-Two Weeks Ended | ||||||||||||||||||||||||||||
December 27, 2015 | December 28, 2014 | December 27, 2015 | December 28, 2014 | December 27, 2015 | December 28, 2014 | December 27, 2015 | December 28, 2014 | |||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
Net income from continuing operations | $ | 63,050 | $ | 167,003 | $ | 645,962 | $ | 711,438 | 3.22 | % | 7.91 | % | 7.90 | % | 8.29 | % | ||||||||||||||||
Add: | ||||||||||||||||||||||||||||||||
Interest expense, net | 10,091 | 34,838 | 33,875 | 77,271 | 0.51 | % | 1.65 | % | 0.41 | % | 0.90 | % | ||||||||||||||||||||
Income tax expense (benefit) | 33,045 | 106,021 | 346,796 | 390,953 | 1.69 | % | 5.02 | % | 4.24 | % | 4.55 | % | ||||||||||||||||||||
Depreciation and amortization | 42,490 | 43,084 | 158,975 | 155,824 | 2.17 | % | 2.04 | % | 1.94 | % | 1.82 | % | ||||||||||||||||||||
Asset impairments | — | — | — | — | — | % | — | % | — | % | — | % | ||||||||||||||||||||
Minus: | — | % | — | % | — | % | — | % | ||||||||||||||||||||||||
Amortization of capitalized financing costs | 930 | 6,348 | 3,638 | 13,712 | 0.05 | % | 0.30 | % | 0.04 | % | 0.16 | % | ||||||||||||||||||||
EBITDA | 147,746 | 344,598 | 1,181,970 | 1,321,774 | 7.54 | % | 16.33 | % | 14.45 | % | 15.40 | % | ||||||||||||||||||||
Add: | ||||||||||||||||||||||||||||||||
Foreign currency transaction losses (gains) | 2,134 | 23,047 | 25,940 | 27,979 | 0.11 | % | 1.09 | % | 0.32 | % | 0.33 | % | ||||||||||||||||||||
Restructuring charges | — | — | 5,605 | 2,286 | — | % | — | % | 0.07 | % | 0.03 | % | ||||||||||||||||||||
Minus: | ||||||||||||||||||||||||||||||||
Net income (loss) attributable to noncontrolling interest | (98 | ) | (184 | ) | 48 | (210 | ) | — | % | (0.01 | )% | — | % | — | % | |||||||||||||||||
Adjusted EBITDA | $ | 149,978 | $ | 367,829 | $ | 1,213,467 | $ | 1,352,249 | 7.65 | % | 17.43 | % | 14.83 | % | 15.75 | % | ||||||||||||||||
Net Revenue: | $ | 1,960,780 | $ | 2,110,436 | $ | 8,180,104 | $ | 8,583,365 | $ | 1,960,780 | $ | 2,110,436 | $ | 8,180,104 | $ | 8,583,365 |
PILGRIM'S PRIDE CORPORATION | |||||||||||||||
Reconciliation of Adjusted Earnings | |||||||||||||||
(Unaudited) | |||||||||||||||
Thirteen Weeks Ended | Fifty-Two Weeks Ended | ||||||||||||||
December 27, 2015 | December 28, 2014 | December 27, 2015 | December 28, 2014 | ||||||||||||
(In thousands, except per share data) | |||||||||||||||
Net income (loss) attributable to Pilgrim's Pride Corporation | $ | 63,148 | $ | 167,187 | $ | 645,914 | $ | 711,648 | |||||||
Loss on early extinguishment of debt | — | 25,271 | 1,470 | 29,475 | |||||||||||
Foreign currency transaction losses (gains) | 2,134 | 23,047 | 25,940 | 27,979 | |||||||||||
Income (loss) before loss on early extinguishment of debt and foreign currency transaction losses (gains) | 65,282 | 215,505 | 673,324 | 769,102 | |||||||||||
Weighted average diluted shares of common stock outstanding | 255,478 | 259,543 | 258,676 | 259,471 | |||||||||||
Income (loss) before loss on early extinguishment of debt and foreign currency transaction losses (gains) per common diluted share | $ | 0.26 | $ | 0.83 | $ | 2.60 | $ | 2.96 |
PILGRIM'S PRIDE CORPORATION | |||||||||||
Reconciliation of Net Debt | |||||||||||
(Unaudited) | |||||||||||
December 29, 2013 | December 28, 2014 | December 27, 2015 | |||||||||
(In thousands) | |||||||||||
Long term debt, less current maturities | $ | 501,999 | $ | 3,980 | $ | 985,509 | |||||
Add: Current maturities of long term debt and notes payable | 410,234 | 262 | 28,812 | ||||||||
Minus: Cash and cash equivalents | 508,206 | 576,143 | 439,638 | ||||||||
Minus: Available-for-sale securities | 96,902 | — | — | ||||||||
Net debt (cash position) | $ | 307,125 | $ | (571,901 | ) | $ | 574,683 |
PILGRIM'S PRIDE CORPORATION | ||||||||||||||||
Supplementary Selected Segment and Geographic Data | ||||||||||||||||
Thirteen Weeks Ended | Fifty-Two Weeks Ended | |||||||||||||||
December 27, 2015 | December 28, 2014 | December 27, 2015 | December 28, 2014 | |||||||||||||
(Unaudited) | ||||||||||||||||
(In thousands) | ||||||||||||||||
Sources of net sales by country of origin: | ||||||||||||||||
US: | $ | 1,663,361 | $ | 1,888,332 | $ | 7,143,354 | $ | 7,647,036 | ||||||||
Mexico: | 297,419 | 222,104 | 1,036,750 | 936,329 | ||||||||||||
Total net sales: | $ | 1,960,780 | $ | 2,110,436 | $ | 8,180,104 | $ | 8,583,365 | ||||||||
Sources of cost of sales by country of origin: | ||||||||||||||||
US: | $ | 1,505,336 | $ | 1,544,147 | $ | 6,016,493 | $ | 6,444,234 | ||||||||
Mexico: | 294,775 | 187,140 | 909,329 | 745,136 | ||||||||||||
Elimination: | (24 | ) | — | (95 | ) | — | ||||||||||
Total cost of sales: | $ | 1,800,087 | $ | 1,731,287 | $ | 6,925,727 | $ | 7,189,370 | ||||||||
Sources of gross profit by country of origin: | ||||||||||||||||
US: | $ | 158,025 | $ | 344,185 | $ | 1,126,861 | $ | 1,202,802 | ||||||||
Mexico: | 2,644 | 34,964 | 127,421 | 191,193 | ||||||||||||
Elimination: | 24 | — | 95 | — | ||||||||||||
Total gross profit: | $ | 160,693 | $ | 379,149 | $ | 1,254,377 | $ | 1,393,995 |