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 8, 2017
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 8, 2017 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 8, 2017
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 8, 2017 | /s/ Fabio Sandri | |
Fabio Sandri | |||
Chief Financial Officer | |||
Exhibit Index
Exhibit 99.1 Press release dated February 8, 2017
Pilgrim’s Pride Ends Fiscal Year 2016 with an Operating Income of $714 Million and an Operating Margin of 9.0%
GREELEY, Colo., February 8, 2017 (GLOBE NEWSWIRE) - Pilgrim’s Pride Corporation (NASDAQ: PPC) reports fourth quarter and year-end 2016 financial results.
Fourth Quarter Results
• | Net Sales of $1.91 billion. |
• | Net Income of $70.6 million, GAAP EPS of $0.28. |
• | Adjusted EBITDA of $172.2 million (or a 9.0% margin). |
• | Cash Flow from Operations of $224.4 million. |
2016 Highlights
• | Invested $270 million in capex during 2016 on our operations, including strategic projects on product mix changes to reduce impact of commodity markets, strengthen operational efficiencies as well as tailored customer needs, and improve margin profile. |
• | Over $200 million shares repurchased and $2.2 billion in special dividends in last two years indicating strong commitment to shareholder value generation and optimal capital structure while preserving growth initiatives. |
• | Small and case-ready birds continue to deliver strong performance, on favorable market conditions, despite greater availability of other proteins. |
• | Acquisition of the GNP Company completed; integration and synergy capture well underway. |
• | Successful launch of premium, Pilgrim’s-branded Value Added Products in Mexico, complementing the existing popular Del Dia range of products, providing improved coverage of all consumer market segments. |
Unaudited, In Millions, Except Per Share and Percentages | ||||||||||||
Thirteen Weeks Ended | Fifty-Two Weeks Ended | |||||||||||
Dec 25, 2016 | Dec 27, 2015 | Y/Y Change | Dec 25, 2016 | Dec 27, 2015 | Y/Y Change | |||||||
Net Sales | $1,908.2 | $1,960.8 | -2.7% | $7,931.1 | $8,180.1 | -3.0% | ||||||
GAAP EPS | $0.28 | $0.25 | +12.0% | $1.73 | $2.50 | -30.8% | ||||||
Operating Income | $124.3 | $107.8 | +15.3% | $713.5 | $1,044.9 | -31.7% | ||||||
Adjusted EBITDA (1) | $172.2 | $150.0 | +14.8% | $899.3 | $1,213.5 | -25.9% | ||||||
Adjusted EBITDA Margin (1) | 9.0% | 7.7% | +1.3pts | 11.3% | 14.8% | -3.5pts | ||||||
(1) | Reconciliations for non-GAAP measures are provided in subsequent sections within this release. |
1
“Our Fresh business continued to perform well in Q4 driven by our differentiated portfolio strategy of having a well-balanced mix of multiple bird sizes, geographical coverage, and strong relationships with key customers. Robust traffic at grocery retailers is driving strong demand for our products, a strong indication that chicken demand has remained healthy despite greater availability of other proteins. We remain committed to our prepared foods operations and expect growth in 2017, with new capacity additions at Moorefield to begin contributing to volumes starting in Q1,” stated Bill Lovette, Chief Executive Officer of Pilgrim's.
“We continue to invest in facility improvements and diversify our portfolio by improving mix and offer more differentiated, innovative products to serve key customer requirements, reduce the impact of commodity markets, and further raise our margin profile. Reflecting our commitment to spend cash flows on strong ROI projects, we spent a total of $270 million on capex in 2016, higher than our depreciation and a record for our company; including strategic projects which will strengthen our operational efficiencies and tailored customer needs to improve competitive advantages for us.
“Signifying our commitment to generate shareholder value by optimizing capital structure while pursuing our growth strategy, above all investments in our operations, we paid a total of $2.2 billion in special dividends over the past two years, repurchased over $200 million in shares, successfully integrated our Mexican acquisition and acquired the GNP Company to broaden our geographical footprint and enhance our portfolio of on-trend value-added products.”
Conference Call Information
A conference call to discuss Pilgrim’s quarterly results will be held tomorrow, February 9, at 7:00 a.m. MT (9 a.m. ET). 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/ppc170209.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 (844) 883-3889 within the US, or +1 (412) 317-9245 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 9, 2017.
About Pilgrim’s Pride
Pilgrim’s employs approximately 41,400 people and operates chicken processing plants and prepared-foods facilities in 14 states, Puerto Rico and Mexico. The Company’s primary distribution is through retailers and foodservice distributors. For more information, please visit www.pilgrims.com.
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
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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 |
Director, Investor Relations | |
IRPPC@pilgrims.com | |
(970) 506-8192 | |
www.pilgrims.com | |
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PILGRIM’S PRIDE CORPORATION | ||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
December 25, 2016 | December 27, 2015 | |||||||
(Unaudited) | ||||||||
(In thousands) | ||||||||
Cash and cash equivalents | $ | 120,328 | $ | 439,638 | ||||
Restricted cash and cash equivalents | 4,979 | — | ||||||
Trade accounts and other receivables, less allowance for doubtful accounts | 317,170 | 348,994 | ||||||
Account receivable from related parties | 3,913 | 2,668 | ||||||
Inventories | 813,262 | 801,357 | ||||||
Income taxes receivable | — | 71,410 | ||||||
Prepaid expenses and other current assets | 57,457 | 75,602 | ||||||
Assets held for sale | 5,259 | 6,555 | ||||||
Total current assets | 1,322,368 | 1,746,224 | ||||||
Other long-lived assets | 15,710 | 15,672 | ||||||
Identified intangible assets, net | 38,593 | 47,453 | ||||||
Goodwill | 125,607 | 156,565 | ||||||
Property, plant and equipment, net | 1,505,940 | 1,352,529 | ||||||
Total assets | $ | 3,008,218 | $ | 3,318,443 | ||||
Notes payable to banks | $ | — | $ | 28,726 | ||||
Accounts payable | 555,097 | 482,954 | ||||||
Accounts payable to related parties | 1,421 | 7,000 | ||||||
Accrued expenses | 290,699 | 314,966 | ||||||
Income taxes payable | 20,990 | 13,228 | ||||||
Current maturities of long-term debt | 94 | 86 | ||||||
Total current liabilities | 868,301 | 846,960 | ||||||
Long-term debt, less current maturities | 1,011,858 | 985,509 | ||||||
Deferred tax liabilities | 142,651 | 131,882 | ||||||
Other long-term liabilities | 88,661 | 92,282 | ||||||
Total liabilities | 2,111,471 | 2,056,633 | ||||||
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; 259,682,000 and 259,685,145 shares issued at year-end 2016 and year-end 2015, respectively; 249,046,139 and 254,823,286 shares outstanding at year-end 2016 and year-end 2015, respectively | 2,597 | 2,597 | ||||||
Treasury stock, at cost, 10,635,861 shares at year-end 2016 | (217,117 | ) | (99,233 | ) | ||||
Additional paid-in capital | 1,686,742 | 1,675,674 | ||||||
Retained earnings (accumulated deficit) | (520,635 | ) | (261,252 | ) | ||||
Accumulated other comprehensive loss | (64,243 | ) | (58,930 | ) | ||||
Total Pilgrim’s Pride Corporation stockholders’ equity | 887,344 | 1,258,856 | ||||||
Noncontrolling interest | 9,403 | 2,954 | ||||||
Total stockholders’ equity | 896,747 | 1,261,810 | ||||||
Total liabilities and stockholders' equity | $ | 3,008,218 | $ | 3,318,443 | ||||
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PILGRIM’S PRIDE CORPORATION | ||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Thirteen Weeks Ended | Fifty-Two Weeks Ended | |||||||||||||||
December 25, 2016 | December 27, 2015 | December 25, 2016 | December 27, 2015 | |||||||||||||
(In thousands, except per share data) | ||||||||||||||||
Net sales | $ | 1,908,150 | $ | 1,960,780 | $ | 7,931,123 | $ | 8,180,104 | ||||||||
Cost of sales | 1,727,700 | 1,800,087 | 7,016,763 | 6,925,727 | ||||||||||||
Gross profit | 180,450 | 160,693 | 914,360 | 1,254,377 | ||||||||||||
Selling, general and administrative expense | 55,357 | 52,920 | 199,781 | 203,881 | ||||||||||||
Administrative restructuring charges | 790 | — | 1,069 | 5,605 | ||||||||||||
Operating income | 124,303 | 107,773 | 713,510 | 1,044,891 | ||||||||||||
Interest expense, net of capitalized interest | 10,381 | 10,678 | 45,921 | 37,548 | ||||||||||||
Interest income | (223 | ) | (587 | ) | (1,724 | ) | (3,673 | ) | ||||||||
Foreign currency transaction loss (gain) | 4,734 | 2,134 | 3,897 | 25,940 | ||||||||||||
Miscellaneous, net | (1,582 | ) | (547 | ) | (7,219 | ) | (7,682 | ) | ||||||||
Income before income taxes | 110,993 | 96,095 | 672,635 | 992,758 | ||||||||||||
Income tax expense | 40,844 | 33,045 | 232,906 | 346,796 | ||||||||||||
Net income | 70,149 | 63,050 | 439,729 | 645,962 | ||||||||||||
Less: Net income (loss) attributable to noncontrolling interests | (469 | ) | (98 | ) | (803 | ) | 48 | |||||||||
Net income attributable to Pilgrim’s Pride Corporation | $ | 70,618 | $ | 63,148 | $ | 440,532 | $ | 645,914 | ||||||||
Weighted average shares of common stock outstanding: | ||||||||||||||||
Basic | 250,853 | 255,216 | 253,669 | 258,442 | ||||||||||||
Effect of dilutive common stock equivalents | 542 | 262 | 457 | 234 | ||||||||||||
Diluted | 251,395 | 255,478 | 254,126 | 258,676 | ||||||||||||
Net income attributable to Pilgrim's Pride Corporation per share of common stock outstanding: | ||||||||||||||||
Basic | $ | 0.28 | $ | 0.25 | $ | 1.74 | $ | 2.50 | ||||||||
Diluted | $ | 0.28 | $ | 0.25 | $ | 1.73 | $ | 2.50 | ||||||||
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PILGRIM’S PRIDE CORPORATION AND SUBSIDIARIES | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(Unaudited) | ||||||||
Fifty-Two Weeks Ended | ||||||||
December 25, 2016 | December 27, 2015 | |||||||
(In thousands) | ||||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 439,729 | $ | 645,962 | ||||
Adjustments to reconcile net income to cash provided by operating activities: | ||||||||
Depreciation and amortization | 180,515 | 158,975 | ||||||
Asset impairment | 790 | 4,813 | ||||||
Foreign currency transaction losses (gains) | — | — | ||||||
Accretion of bond discount | — | — | ||||||
Loss (gain) on property disposals | (7,660 | ) | (10,372 | ) | ||||
Gain on investment securities | 452 | — | ||||||
Share-based compensation | 6,102 | 2,975 | ||||||
Deferred income tax expense (benefit) | (3,424 | ) | 29,512 | |||||
Changes in operating assets and liabilities: | ||||||||
Restricted cash and cash equivalents | (4,979 | ) | — | |||||
Trade accounts and other receivables | 35,617 | 61,294 | ||||||
Inventories | (11,905 | ) | 57,078 | |||||
Prepaid expenses and other current assets | 18,146 | 19,840 | ||||||
Accounts payable and accrued expenses | 38,427 | 61,882 | ||||||
Income taxes | 74,597 | (55,428 | ) | |||||
Long-term pension and other postretirement obligations | (10,165 | ) | (3,500 | ) | ||||
Other | (759 | ) | 3,797 | |||||
Cash provided by operating activities | 755,483 | 976,828 | ||||||
Cash flows from investing activities: | ||||||||
Acquisitions of property, plant and equipment | (272,467 | ) | (175,764 | ) | ||||
Business acquisition | — | (373,532 | ) | |||||
Proceeds from property disposals | 10,805 | 14,610 | ||||||
Cash used in investing activities | (261,662 | ) | (534,686 | ) | ||||
Cash flows from financing activities: | ||||||||
Proceeds from notes payable to banks | 36,838 | 28,726 | ||||||
Payments on note payable to bank | (65,564 | ) | — | |||||
Proceeds from long-term debt | 579,876 | 1,680,000 | ||||||
Payments on long-term debt | (556,658 | ) | (683,780 | ) | ||||
Proceeds from equity contribution under Tax Sharing Agreement between JBS USA Holding, S.à.r.l. and Pilgrim's Pride Corporation | 3,690 | — | ||||||
Tax benefit related to share-based compensation | — | 6,474 | ||||||
Contributions from noncontrolling interests | 7,252 | — | ||||||
Payment of capitalized loan costs | (693 | ) | (12,364 | ) | ||||
Purchase of common stock under share repurchase program | (117,884 | ) | (99,233 | ) | ||||
Purchase of common stock from retirement plan participants | (73 | ) | — | |||||
Payment of special cash dividends | (699,915 | ) | (1,498,470 | ) | ||||
Cash used in financing activities | (813,131 | ) | (578,647 | ) | ||||
Effect of exchange rate changes on cash and cash equivalents | — | — | ||||||
Increase in cash and cash equivalents | (319,310 | ) | (136,505 | ) | ||||
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Cash and cash equivalents, beginning of period | 439,638 | 576,143 | ||||||
Cash and cash equivalents, end of period | $ | 120,328 | $ | 439,638 | ||||
Supplemental Disclosure Information: | ||||||||
Interest paid (net of amount capitalized) | $ | 41,774 | $ | 24,210 | ||||
Income taxes paid | 152,884 | 360,347 | ||||||
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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 25, 2016 | December 27, 2015 | December 25, 2016 | December 27, 2015 | |||||||||||||
(In thousands) | ||||||||||||||||
Net income | $ | 70,149 | $ | 63,050 | $ | 439,729 | $ | 645,962 | ||||||||
Add: | ||||||||||||||||
Interest expense, net | 10,158 | 10,091 | 44,197 | 33,875 | ||||||||||||
Income tax expense (benefit) | 40,844 | 33,045 | 232,906 | 346,796 | ||||||||||||
Depreciation and amortization | 46,059 | 42,490 | 180,515 | 158,975 | ||||||||||||
Minus: | ||||||||||||||||
Amortization of capitalized financing costs | 972 | 930 | 3,832 | 3,638 | ||||||||||||
EBITDA | 166,238 | 147,746 | 893,515 | 1,181,970 | ||||||||||||
Add: | ||||||||||||||||
Foreign currency transaction losses (gains) | 4,734 | 2,134 | 3,897 | 25,940 | ||||||||||||
Restructuring charges | 790 | — | 1,069 | 5,605 | ||||||||||||
Minus: | ||||||||||||||||
Net income (loss) attributable to noncontrolling interest | (469 | ) | (98 | ) | (803 | ) | 48 | |||||||||
Adjusted EBITDA | $ | 172,231 | $ | 149,978 | $ | 899,284 | $ | 1,213,467 | ||||||||
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The summary unaudited consolidated income statement data for the twelve months ended December 25, 2016 (the LTM Period) have been calculated by summing each of the unaudited thirteen week periods within the audited fifty-two week period ended December 25, 2016.
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 27, 2016 | June 26, 2016 | September 25, 2016 | December 25, 2016 | December 25, 2016 | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Net income | $ | 118,011 | $ | 153,042 | $ | 98,527 | $ | 70,149 | $ | 439,729 | ||||||||||
Add: | ||||||||||||||||||||
Interest expense, net | 11,340 | 10,865 | 11,834 | 10,158 | 44,197 | |||||||||||||||
Income tax expense (benefit) | 62,604 | 78,398 | 51,060 | 40,844 | 232,906 | |||||||||||||||
Depreciation and amortization | 42,391 | 46,293 | 45,772 | 46,059 | 180,515 | |||||||||||||||
Minus: | ||||||||||||||||||||
Amortization of capitalized financing costs | 928 | 962 | 970 | 972 | 3,832 | |||||||||||||||
EBITDA | 233,418 | 287,636 | 206,223 | 166,238 | 893,515 | |||||||||||||||
Add: | ||||||||||||||||||||
Foreign currency transaction losses (gains) | (235 | ) | (4,744 | ) | 4,142 | 4,734 | 3,897 | |||||||||||||
Restructuring charges | — | — | 279 | 790 | 1,069 | |||||||||||||||
Minus: | ||||||||||||||||||||
Net income (loss) attributable to noncontrolling interest | (360 | ) | 156 | (130 | ) | (469 | ) | (803 | ) | |||||||||||
Adjusted EBITDA | $ | 233,543 | $ | 282,736 | $ | 210,774 | $ | 172,231 | $ | 899,284 | ||||||||||
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PILGRIM'S PRIDE CORPORATION | ||||||||||||||||||||||||||||||||
Reconciliation of EBITDA Margin | ||||||||||||||||||||||||||||||||
(Unaudited) | Thirteen Weeks Ended | Fifty-Two Weeks Ended | Thirteen Weeks Ended | Fifty-Two Weeks Ended | ||||||||||||||||||||||||||||
December 25, 2016 | December 27, 2015 | December 25, 2016 | December 27, 2015 | December 25, 2016 | December 27, 2015 | December 25, 2016 | December 27, 2015 | |||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
Net income | $ | 70,149 | $ | 63,050 | $ | 439,729 | $ | 645,962 | 3.68 | % | 3.22 | % | 5.54 | % | 7.90 | % | ||||||||||||||||
Add: | ||||||||||||||||||||||||||||||||
Interest expense, net | 10,158 | 10,091 | 44,197 | 33,875 | 0.53 | % | 0.51 | % | 0.56 | % | 0.41 | % | ||||||||||||||||||||
Income tax expense (benefit) | 40,844 | 33,045 | 232,906 | 346,796 | 2.14 | % | 1.69 | % | 2.94 | % | 4.24 | % | ||||||||||||||||||||
Depreciation and amortization | 46,059 | 42,490 | 180,515 | 158,975 | 2.41 | % | 2.17 | % | 2.28 | % | 1.94 | % | ||||||||||||||||||||
Minus: | — | % | — | % | — | % | — | % | ||||||||||||||||||||||||
Amortization of capitalized financing costs | 972 | 930 | 3,832 | 3,638 | 0.05 | % | 0.05 | % | 0.05 | % | 0.04 | % | ||||||||||||||||||||
EBITDA | 166,238 | 147,746 | 893,515 | 1,181,970 | 8.71 | % | 7.54 | % | 11.27 | % | 14.45 | % | ||||||||||||||||||||
Add: | ||||||||||||||||||||||||||||||||
Foreign currency transaction losses (gains) | 4,734 | 2,134 | 3,897 | 25,940 | 0.25 | % | 0.11 | % | 0.05 | % | 0.32 | % | ||||||||||||||||||||
Restructuring charges | 790 | — | 1,069 | 5,605 | 0.04 | % | — | % | 0.01 | % | 0.07 | % | ||||||||||||||||||||
Minus: | ||||||||||||||||||||||||||||||||
Net income (loss) attributable to noncontrolling interest | (469 | ) | (98 | ) | (803 | ) | 48 | (0.02 | )% | — | % | (0.01 | )% | — | % | |||||||||||||||||
Adjusted EBITDA | $ | 172,231 | $ | 149,978 | $ | 899,284 | $ | 1,213,467 | 9.03 | % | 7.65 | % | 11.34 | % | 14.83 | % | ||||||||||||||||
Net Revenue: | $ | 1,908,150 | $ | 1,960,780 | $ | 7,931,123 | $ | 8,180,104 | $ | 1,908,150 | $ | 1,960,780 | $ | 7,931,123 | $ | 8,180,104 | ||||||||||||||||
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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 25, 2016 | December 27, 2015 | December 25, 2016 | December 27, 2015 | ||||||||||||
(In thousands, except per share data) | |||||||||||||||
Net income (loss) attributable to Pilgrim's Pride Corporation | $ | 70,618 | $ | 63,148 | $ | 440,532 | $ | 645,914 | |||||||
Loss on early extinguishment of debt | — | — | — | 1,470 | |||||||||||
Foreign currency transaction losses (gains) | 4,734 | 2,134 | 3,897 | 25,940 | |||||||||||
Income (loss) before loss on early extinguishment of debt and foreign currency transaction losses (gains) | 75,352 | 65,282 | 444,429 | 673,324 | |||||||||||
Weighted average diluted shares of common stock outstanding | 251,395 | 255,478 | 254,126 | 258,676 | |||||||||||
Income (loss) before loss on early extinguishment of debt and foreign currency transaction losses (gains) per common diluted share | $ | 0.30 | $ | 0.26 | $ | 1.75 | $ | 2.60 | |||||||
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A reconciliation of GAAP to non-GAAP financial measures. Net income (loss) per share is calculated by dividing the net income (loss) attributable to Pilgrim's Pride Corporation stockholders by the weighted average number of diluted shares.
PILGRIM'S PRIDE CORPORATION | |||||||||||||||
Reconciliation of GAAP EPS to Adjusted EPS | |||||||||||||||
(Unaudited) | |||||||||||||||
Thirteen Weeks Ended | Fifty-Two Weeks Ended | ||||||||||||||
December 25, 2016 | December 27, 2015 | December 25, 2016 | December 27, 2015 | ||||||||||||
(In thousands, except per share data) | |||||||||||||||
GAAP EPS | $ | 0.28 | $ | 0.25 | $ | 1.73 | $ | 2.50 | |||||||
Loss on early extinguishment of debt | — | — | — | 0.01 | |||||||||||
Foreign currency transaction losses (gains) | 0.02 | 0.01 | 0.02 | 0.10 | |||||||||||
Adjusted EPS | $ | 0.30 | $ | 0.26 | $ | 1.75 | $ | 2.60 | |||||||
Weighted average diluted shares of common stock outstanding | 251,395 | 255,478 | 254,126 | 258,676 | |||||||||||
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Net debt is defined as total long term debt less current maturities, plus current maturities of long term debt and notes payable, 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) | |||||||||||
December 25, 2016 | December 27, 2015 | December 28, 2014 | |||||||||
(In thousands) | |||||||||||
Long term debt, less current maturities | $ | 1,011,858 | $ | 985,509 | $ | 3,980 | |||||
Add: Current maturities of long term debt and notes payable | 94 | 28,812 | 262 | ||||||||
Minus: Cash and cash equivalents | 120,328 | 439,638 | 576,143 | ||||||||
Minus: Available-for-sale securities | — | — | — | ||||||||
Net debt (cash position) | $ | 891,624 | $ | 574,683 | $ | (571,901 | ) | ||||
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PILGRIM'S PRIDE CORPORATION | ||||||||||||||||
Supplementary Selected Segment and Geographic Data | ||||||||||||||||
Thirteen Weeks Ended | Fifty-Two Weeks Ended | |||||||||||||||
December 25, 2016 | December 27, 2015 | December 25, 2016 | December 27, 2015 | |||||||||||||
(Unaudited) | ||||||||||||||||
(In thousands) | ||||||||||||||||
Sources of net sales by country of origin: | ||||||||||||||||
US: | $ | 1,599,052 | $ | 1,663,362 | $ | 6,671,403 | $ | 7,143,354 | ||||||||
Mexico: | 309,098 | 297,418 | 1,259,720 | 1,036,750 | ||||||||||||
Total net sales: | $ | 1,908,150 | $ | 1,960,780 | $ | 7,931,123 | $ | 8,180,104 | ||||||||
Sources of cost of sales by country of origin: | ||||||||||||||||
US: | $ | 1,458,931 | $ | 1,505,335 | $ | 5,929,318 | $ | 6,016,493 | ||||||||
Mexico: | 268,792 | 294,775 | 1,087,540 | 909,329 | ||||||||||||
Elimination: | (23 | ) | (23 | ) | (95 | ) | (95 | ) | ||||||||
Total cost of sales: | $ | 1,727,700 | $ | 1,800,087 | $ | 7,016,763 | $ | 6,925,727 | ||||||||
Sources of gross profit by country of origin: | ||||||||||||||||
US: | $ | 140,121 | $ | 158,025 | $ | 742,085 | $ | 1,126,861 | ||||||||
Mexico: | 40,306 | 2,644 | 172,180 | 127,421 | ||||||||||||
Elimination: | 23 | 24 | 95 | 95 | ||||||||||||
Total gross profit: | $ | 180,450 | $ | 160,693 | $ | 914,360 | $ | 1,254,377 | ||||||||
Sources of operating income by country of origin: | ||||||||||||||||
US: | $ | 92,280 | $ | 116,417 | $ | 572,558 | $ | 949,610 | ||||||||
Mexico: | 32,000 | (8,668 | ) | 140,857 | 95,186 | |||||||||||
Elimination: | 23 | 24 | 95 | 95 | ||||||||||||
Total operating income: | $ | 124,303 | $ | 107,773 | $ | 713,510 | $ | 1,044,891 | ||||||||
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