Pilgrim’s Pride Reports Q3 Net Sales of $3.08 Billion, Operating Income of $94 Million and GAAP EPS of $0.14
Third Quarter Highlights
Net Sales of$3.08 billion .- Net GAAP Income of
$33.4 million . Adjusted Net Income of$161.7 million or adjusted EPS of$0.66 excluding$110.5 million DOJ agreement. - Consolidated Operating Income margin of 3% with Adjusted Operating Income margins of 6.7% in
U.S. excluding DOJ agreement, 18.4% inMexico and 3.5% inEurope . - Adjusted EBITDA of
$305.0 million , or a 9.9% margin, 18% higher than a year ago. - Faced with the global Covid-19 pandemic, we continue to be guided by our principles of an uncompromising commitment to the safety of our team members, our duty to provide quality food globally, and our responsibility to provide continued employment opportunities and benefits for our team. To support the local communities where we operate, we initiated the “Hometown Strong” initiative, and are committed to invest
$20 million in 2020. - Strong focus in execution and dedication by our team members, supported by portfolio strategy of differentiated products, strong Key Customer relationships, and diversified global presence have helped us to counter challenging market conditions due to Covid-19 and improve the resiliency in our results.
- Demand in
U.S. recovering, with our Retail and QSR business stronger than a year ago, though volatility and challenging conditions in commodity segments still remaining. Relative performance versus the industry continuing to improve, supported by our agility in adapting mix and Key Customer approach. Mexico experienced a significant rebound to record one of the strongest Q3 in its history despite unfavorable mix impact and added operating costs. Strong execution, higher economic activities, better supply/demand balance, a stronger Peso, and our increased share of non-commodity products contributed to the strength.- The legacy European chicken business continued to improve its results despite Covid-19 impact, with better operational efficiencies and a commitment to innovation. Momentum of newly acquired European pork assets in generating positive EBITDA continuing, while margins also increasing on a consistent basis.
- Our liquidity position remains strong, supported by the relentless emphasis on cash flow generation, focus on working capital management, and disciplined investments in high-return projects, preserving the opportunity to maintain strategic growth priorities while strengthening our differentiated global platforms.
Unaudited (2) | Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
2020 |
2019 |
Y/Y Change | 2020 |
2019 |
Y/Y Change | |||||||||||||||||||
(In millions, except per share and percentages) | ||||||||||||||||||||||||
Net sales | $ | 3,075.1 | $ | 2,778.0 | +10.7 | % | $ | 8,974.1 | $ | 8,345.7 | +7.5 | % | ||||||||||||
$ | 0.14 | $ | 0.44 | (68.2 | ) | % | $ | 0.38 | $ | 1.46 | (74.0 | ) | % | |||||||||||
Operating income | $ | 94.3 | $ | 188.2 | (49.9 | ) | % | $ | 206.0 | $ | 604.8 | (65.9 | ) | % | ||||||||||
Adjusted EBITDA(1) | $ | 305.0 | $ | 258.3 | +18.1 | % | $ | 582.7 | $ | 812.1 | (28.2 | ) | % | |||||||||||
Adjusted EBITDA margin(1) | 9.9 | % | 9.3 | % | +0.6 pts | 6.5 | % | 9.7 | % | -3.2 pts |
(1) Reconciliations for non-
(2) Comparisons include newly acquired European pork assets (Tulip) from
“Once again we are grateful to our team for their continued commitment, dedication and hard work, in supporting our ability to keep our team members safe and healthy, and allowing us the capability to maintain production and supply to our customers during this unprecedented crisis. Although conditions have been improving, the markets have remained volatile and challenging in Q3 as a result of Covid-19. However, our diversified strategy has continued to mitigate the tough environment and produce the expected results in relative performance to industry competition, and deliver more resilient performance regardless of changes in specific market conditions. For Q3, the
“During the third quarter, in the
“After a very difficult first half in 2020, our Mexican operations delivered great results in Q3, and we generated one of the strongest Q3 in the company's history in
“Our legacy European chicken operations are continuing to improve, driven by exposure to retail as well as a recovery in foodservice demand, particularly from QSR, despite the significant impact of Covid-19 on the operations. In addition, our strong internal operating performance and commitment to innovation have helped in mitigating the difficult environment. The positive momentum in improvement from the newly acquired European pork assets has been maintained, with positive EBITDA and margins continuing to increase. The performance was driven by strong demand at retail partially offset by a reduction in foodservice, continuing strength in pork exports especially to
Conference Call Information
A conference call to discuss Pilgrim’s quarterly results will be held tomorrow,
To pre-register, go to: https://services.choruscall.com/links/ppc201029.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
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
About Pilgrim’s Pride
Pilgrim’s employs approximately 55,400 people and operates protein processing plants and prepared-foods facilities in 14 states,
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
Contact: | |
Investor Relations | |
IRPPC@pilgrims.com | |
(970) 506-8192 | |
www.pilgrims.com |
PILGRIM’S PRIDE CORPORATION | ||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
(Unaudited) | ||||||||
(In thousands) | ||||||||
Cash and cash equivalents | $ | 768,031 | $ | 260,568 | ||||
Restricted cash and cash equivalents | 17,105 | 20,009 | ||||||
Trade accounts and other receivables, less allowance for doubtful accounts | 706,123 | 741,281 | ||||||
Accounts receivable from related parties | 616 | 944 | ||||||
Inventories | 1,328,704 | 1,383,535 | ||||||
Income taxes receivable | 77,651 | 60,204 | ||||||
Prepaid expenses and other current assets | 159,643 | 131,695 | ||||||
Total current assets | 3,057,873 | 2,598,236 | ||||||
Deferred tax assets | 4,126 | 4,426 | ||||||
Other long-lived assets | 15,079 | 36,325 | ||||||
Identified intangible assets, net | 566,696 | 596,053 | ||||||
955,087 | 973,750 | |||||||
Operating lease assets, net | 284,820 | 301,513 | ||||||
Property, plant and equipment, net | 2,585,818 | 2,592,061 | ||||||
Total assets | $ | 7,469,499 | $ | 7,102,364 | ||||
Accounts payable | $ | 915,661 | $ | 993,780 | ||||
Accounts payable to related parties | 5,752 | 3,819 | ||||||
Revenue contract liability | 57,221 | 41,770 | ||||||
Accrued expenses and other current liabilities | 691,329 | 575,319 | ||||||
Income taxes payable | — | 7,075 | ||||||
Current maturities of long-term debt | 25,485 | 26,392 | ||||||
Total current liabilities | 1,695,448 | 1,648,155 | ||||||
Noncurrent operating lease liability, less current maturities | 215,924 | 235,382 | ||||||
Long-term debt, less current maturities | 2,610,668 | 2,276,029 | ||||||
Noncurrent income taxes payable | 7,731 | 7,731 | ||||||
Deferred tax liabilities | 339,051 | 301,907 | ||||||
Other long-term liabilities | 169,365 | 97,100 | ||||||
Total liabilities | 5,038,187 | 4,566,304 | ||||||
Common stock | 2,612 | 2,611 | ||||||
(342,698 | ) | (234,892 | ) | |||||
Additional paid-in capital | 1,953,969 | 1,955,261 | ||||||
Retained earnings | 972,490 | 877,812 | ||||||
Accumulated other comprehensive loss | (165,520 | ) | (75,129 | ) | ||||
Total Pilgrim’s |
2,420,853 | 2,525,663 | ||||||
Noncontrolling interest | 10,459 | 10,397 | ||||||
Total stockholders’ equity | 2,431,312 | 2,536,060 | ||||||
Total liabilities and stockholders’ equity | $ | 7,469,499 | $ | 7,102,364 |
PILGRIM’S PRIDE CORPORATION | ||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
(In thousands, except per share data) | ||||||||||||||||
Net sales | $ | 3,075,121 | $ | 2,777,970 | $ | 8,974,072 | $ | 8,345,730 | ||||||||
Cost of sales | 2,761,279 | 2,495,773 | 8,363,272 | 7,476,731 | ||||||||||||
Gross profit | 313,842 | 282,197 | 610,800 | 868,999 | ||||||||||||
Selling, general and administrative expense | 219,554 | 94,032 | 404,837 | 264,313 | ||||||||||||
Administrative restructuring activity | — | (20 | ) | — | (90 | ) | ||||||||||
Operating income | 94,288 | 188,185 | 205,963 | 604,776 | ||||||||||||
Interest expense, net of capitalized interest | 30,564 | 32,028 | 95,575 | 99,184 | ||||||||||||
Interest income | (1,763 | ) | (4,698 | ) | (4,611 | ) | (11,481 | ) | ||||||||
Foreign currency transaction losses (gains) | 9,092 | 3,027 | (3,768 | ) | 7,923 | |||||||||||
Miscellaneous, net | 360 | 1,367 | (33,873 | ) | 2,521 | |||||||||||
Income before income taxes | 56,035 | 156,461 | 152,640 | 506,629 | ||||||||||||
Income tax expense | 22,344 | 46,365 | 57,900 | 142,328 | ||||||||||||
Net income | 33,691 | 110,096 | 94,740 | 364,301 | ||||||||||||
Less: Net income (loss) attributable to noncontrolling interests | 245 | 331 | 62 | 457 | ||||||||||||
Net income attributable to Pilgrim’s |
$ | 33,446 | $ | 109,765 | $ | 94,678 | $ | 363,844 | ||||||||
Weighted average shares of common stock outstanding: | ||||||||||||||||
Basic | 244,186 | 249,467 | 246,740 | 249,344 | ||||||||||||
Effect of dilutive common stock equivalents | 190 | 262 | 158 | 308 | ||||||||||||
Diluted | 244,376 | 249,729 | 248,308 | 249,652 | ||||||||||||
Net income attributable to common stock outstanding: |
||||||||||||||||
Basic | $ | 0.14 | $ | 0.44 | $ | 0.38 | $ | 1.46 | ||||||||
Diluted | $ | 0.14 | $ | 0.44 | $ | 0.38 | $ | 1.46 |
PILGRIM’S PRIDE CORPORATION AND SUBSIDIARIES | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(Unaudited) | ||||||||
Nine Months Ended | ||||||||
(In thousands) | ||||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 94,740 | $ | 364,301 | ||||
Adjustments to reconcile net income to cash provided by operating activities: | ||||||||
Depreciation and amortization | 248,641 | 210,381 | ||||||
Deferred income tax expense | 37,739 | 2,396 | ||||||
Gain on property disposals | (8,009 | ) | (9,546 | ) | ||||
Negative adjustment to previously recognized gain on bargain purchase | 3,746 | — | ||||||
Loan cost amortization | 3,635 | 3,609 | ||||||
Stock-based compensation | (1,291 | ) | 7,322 | |||||
Accretion of discount related to Senior Notes | 737 | 737 | ||||||
Amortization of premium related to Senior Notes | (501 | ) | (501 | ) | ||||
Loss (gain) on equity-method investments | 297 | (48 | ) | |||||
Foreign currency transaction loss related to borrowing arrangements | — | 1,259 | ||||||
Changes in operating assets and liabilities: | ||||||||
Trade accounts and other receivables | 44,615 | (46,648 | ) | |||||
Inventories | 41,292 | (108,117 | ) | |||||
Prepaid expenses and other current assets | (29,290 | ) | 3,536 | |||||
Accounts payable, accrued expenses and other current liabilities | 93,114 | 67,308 | ||||||
Income taxes | (30,868 | ) | 40,549 | |||||
Long-term pension and other postretirement obligations | (823 | ) | (1,578 | ) | ||||
Other operating assets and liabilities | 10,561 | 544 | ||||||
Cash provided by operating activities | 508,335 | 535,504 | ||||||
Cash flows from investing activities: | ||||||||
Acquisitions of property, plant and equipment | (242,603 | ) | (258,725 | ) | ||||
Proceeds from property disposals | 21,715 | 15,168 | ||||||
Purchase of acquired business, net of cash acquired | (4,216 | ) | — | |||||
Cash used in investing activities | (225,104 | ) | (243,557 | ) | ||||
Cash flows from financing activities: | ||||||||
Proceeds from revolving line of credit and long-term borrowings | 386,696 | 99,638 | ||||||
Purchase of common stock under share repurchase program | (107,806 | ) | (2,898 | ) | ||||
Payments on revolving line of credit, long-term borrowings and finance lease obligations | (56,763 | ) | (123,276 | ) | ||||
Payment from equity distribution under Tax Sharing Agreement between |
— | (525 | ) | |||||
Payment of capitalized loan costs | — | (652 | ) | |||||
Cash provided by financing activities | 222,127 | (27,713 | ) | |||||
Effect of exchange rate changes on cash and cash equivalents | (799 | ) | (808 | ) | ||||
Increase in cash, cash equivalents and restricted cash | 504,559 | 263,426 | ||||||
Cash, cash equivalents and restricted cash, beginning of period | 280,577 | 361,578 | ||||||
Cash, cash equivalents and restricted cash, end of period | $ | 785,136 | $ | 625,004 |
PILGRIM’S PRIDE CORPORATION
Non-GAAP Financial Measures Reconciliation
(Unaudited)
This earnings release and the following financial statement tables include several supplemental non-GAAP financial measures, including EBITDA, Adjusted EBITDA, EBITDA Margin, Adjusted Operating Income, Adjusted Net Income, and Adjusted EPS, as further described below.
“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: (1) income (loss) attributable to noncontrolling interests, (2) transaction costs related to acquisitions, (3) charges or income from restructuring activities, (4) litigation settlement income or charges, (5) gain on bargain purchase and (6) 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
Reconciliation of Adjusted EBITDA | |||||||||||||||
(Unaudited) | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
(In thousands) | |||||||||||||||
Net income | $ | 33,691 | $ | 110,096 | $ | 94,740 | $ | 364,301 | |||||||
Add: | |||||||||||||||
Interest expense, net | 28,801 | 27,330 | 90,964 | 87,703 | |||||||||||
Income tax expense | 22,344 | 46,365 | 57,900 | 142,328 | |||||||||||
Depreciation and amortization | 84,265 | 71,851 | 248,641 | 210,381 | |||||||||||
EBITDA | 169,101 | 255,642 | 492,245 | 804,713 | |||||||||||
Add: | |||||||||||||||
Foreign currency transaction losses (gains) | 9,092 | 3,027 | (3,768 | ) | 7,923 | ||||||||||
Transaction costs related to acquisitions | — | — | 134 | — | |||||||||||
DOJ agreement | 110,524 | — | 110,524 | — | |||||||||||
Restructuring activity | — | (20 | ) | — | (90 | ) | |||||||||
Hometown Strong commitment | 14,506 | — | 14,506 | — | |||||||||||
Minus: | |||||||||||||||
Negative adjustment to previously recognized gain on bargain purchase | (2,006 | ) | — | (3,746 | ) | — | |||||||||
Shareholder litigation settlement | — | — | 34,643 | — | |||||||||||
Net income attributable to noncontrolling interest | 245 | 331 | 62 | 457 | |||||||||||
Adjusted EBITDA | $ | 304,984 | $ | 258,318 | $ | 582,682 | $ | 812,089 |
The summary unaudited consolidated income statement data for the twelve months ended
Reconciliation of LTM Adjusted EBITDA | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
Three Months Ended | LTM Ended | |||||||||||||||||||
2019 |
2020 |
2020 |
2020 |
2020 |
||||||||||||||||
(In thousands) | ||||||||||||||||||||
Net income | $ | 92,235 | $ | 67,449 | $ | (6,400 | ) | $ | 33,691 | $ | 186,975 | |||||||||
Add: | ||||||||||||||||||||
Interest expense, net | 30,650 | 30,998 | 31,165 | 28,801 | 121,614 | |||||||||||||||
Income tax expense | 18,681 | 38,512 | (2,956 | ) | 22,344 | 76,581 | ||||||||||||||
Depreciation and amortization | 76,849 | 79,773 | 84,603 | 84,265 | 325,490 | |||||||||||||||
EBITDA | 218,415 | 216,732 | 106,412 | 169,101 | 710,660 | |||||||||||||||
Add: | ||||||||||||||||||||
Foreign currency transaction losses (gains) |
(1,006 | ) | (18,385 | ) | 5,525 | 9,092 | (4,774 | ) | ||||||||||||
Transaction costs related to acquisitions | 1,239 | 215 | (81 | ) | — | 1,373 | ||||||||||||||
DOJ agreement | — | — | — | 110,524 | 110,524 | |||||||||||||||
Restructuring activity | 6 | — | — | — | 6 | |||||||||||||||
Hometown Strong commitment | — | — | — | 14,506 | 14,506 | |||||||||||||||
Minus: | ||||||||||||||||||||
Gain on bargain purchase | 56,880 | (1,740 | ) | — | (2,006 | ) | 53,134 | |||||||||||||
Shareholder litigation settlement | — | 34,643 | — | — | 34,643 | |||||||||||||||
Net income attributable to noncontrolling interest |
155 | 181 | (364 | ) | 245 | 217 | ||||||||||||||
Adjusted EBITDA | $ | 161,619 | $ | 165,478 | $ | 112,220 | $ | 304,984 | $ | 744,301 |
EBITDA margins have been calculated by taking the relevant unaudited EBITDA figures, then dividing by net sales for the applicable period. EBITDA margins are presented because they are used by management and we believe it is frequently used by securities analysts, investors and other interested parties, as a supplement to our results prepared in accordance with
Reconciliation of EBITDA Margin | ||||||||||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||
Net income | $ | 33,691 | $ | 110,096 | $ | 94,740 | $ | 364,301 | 1.10 | % | 3.96 | % | 1.06 | % | 4.37 | % | ||||||||||||||||||
Add: | ||||||||||||||||||||||||||||||||||
Interest expense, net | 28,801 | 27,330 | 90,964 | 87,703 | 0.94 | % | 0.98 | % | 1.01 | % | 1.05 | % | ||||||||||||||||||||||
Income tax expense | 22,344 | 46,365 | 57,900 | 142,328 | 0.73 | % | 1.67 | % | 0.65 | % | 1.71 | % | ||||||||||||||||||||||
Depreciation and amortization | 84,265 | 71,851 | 248,641 | 210,381 | 2.74 | % | 2.59 | % | 2.77 | % | 2.53 | % | ||||||||||||||||||||||
EBITDA | 169,101 | 255,642 | 492,245 | 804,713 | 5.51 | % | 9.20 | % | 5.49 | % | 9.66 | % | ||||||||||||||||||||||
Add: | ||||||||||||||||||||||||||||||||||
Foreign currency transaction losses (gains) | 9,092 | 3,027 | (3,768 | ) | 7,923 | 0.29 | % | 0.11 | % | (0.04 | ) | % | 0.10 | % | ||||||||||||||||||||
Acquisition charges | — | — | 134 | — | — | % | — | % | — | % | — | % | ||||||||||||||||||||||
DOJ agreement | 110,524 | — | 110,524 | — | 3.59 | % | — | % | 1.23 | % | — | % | ||||||||||||||||||||||
Restructuring activity | — | (20 | ) | — | (90 | ) | — | % | — | % | — | % | — | % | ||||||||||||||||||||
Hometown Strong commitment | 14,506 | — | 14,506 | — | 0.47 | % | — | % | 0.16 | % | — | % | ||||||||||||||||||||||
Minus: | ||||||||||||||||||||||||||||||||||
Negative adjustment to previously recognized gain on bargain purchase | (2,006 | ) | — | (3,746 | ) | — | (0.07 | ) | % | — | % | (0.04 | ) | % | — | % | ||||||||||||||||||
Shareholder litigation settlement | — | — | 34,643 | — | — | % | — | % | 0.39 | % | — | % | ||||||||||||||||||||||
Net income (loss) attributable to noncontrolling interest | 245 | 331 | 62 | 457 | 0.01 | % | 0.01 | % | — | % | 0.01 | % | ||||||||||||||||||||||
Adjusted EBITDA | $ | 304,984 | $ | 258,318 | $ | 582,682 | $ | 812,089 | 9.92 | % | 9.30 | % | 6.49 | % | 9.75 | % | ||||||||||||||||||
Net sales | $ | 3,075,121 | $ | 2,777,970 | $ | 8,974,072 | $ | 8,345,730 | $ | 3,075,121 | $ | 2,777,970 | $ | 8,974,072 | $ | 8,345,730 |
Adjusted Operating Income is calculated by adding to Operating Income certain items of expense and deducting from Operating Income certain items of income. Management believes that presentation of Adjusted Operating Income provides useful supplemental information about our operating performance and enables comparison of our performance between periods because certain costs shown below are not indicative of our current operating performance. A reconciliation of GAAP operating income to adjusted operating income as follows:
Reconciliation of Adjusted Operating Income | |||||||||||||||
(Unaudited) | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
(In thousands) | |||||||||||||||
GAAP operating income ( |
$ | 2,451 | $ | 125,168 | $ | 126,951 | $ | 426,968 | |||||||
DOJ agreement | 110,524 | — | 110,524 | — | |||||||||||
Hometown Strong commitment | 14,506 | — | 14,506 | — | |||||||||||
Adjusted operating income ( |
$ | 127,481 | $ | 125,168 | $ | 251,981 | $ | 426,968 | |||||||
Adjusted operating income margin ( |
6.7 | % | 6.5 | % | 4.5 | % | 7.4 | % |
Adjusted Operating Income Margin for the
Reconciliation of GAAP Operating Income Margin to Adjusted Operating Income Margin | |||||||||||
(Unaudited) | |||||||||||
Three Months Ended | Nine Months Ended | ||||||||||
(In percent) | |||||||||||
GAAP operating income margin ( |
0.1 | % | 6.5 | % | 2.2 | % | 7.4 | % | |||
DOJ agreement | 5.8 | % | — | % | 2.0 | % | — | % | |||
Hometown Strong commitment | 0.8 | % | — | % | 0.3 | % | — | % | |||
Adjusted operating income margin ( |
6.7 | % | 6.5 | % | 4.5 | % | 7.4 | % |
Adjusted net income attributable to
Reconciliation of Adjusted Net Income | |||||||||||||||
(Unaudited) | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
(In thousands, except per share data) | |||||||||||||||
Net income attributable to Pilgrim's | $ | 33,446 | $ | 109,765 | $ | 94,678 | $ | 363,844 | |||||||
Adjustments: | |||||||||||||||
Acquisition charges and restructuring activity | — | 43 | 134 | (26 | ) | ||||||||||
DOJ agreement | 110,524 | — | 110,524 | — | |||||||||||
Hometown Strong commitment | 14,506 | — | 14,506 | — | |||||||||||
Foreign currency transaction losses (gains) | 9,092 | 3,027 | (3,768 | ) | 7,923 | ||||||||||
Net tax expense (benefit) of adjustments(a) | (5,916 | ) | (747 | ) | (9,158 | ) | (1,923 | ) | |||||||
Adjusted net income attributable to Pilgrim's | $ | 161,652 | $ | 112,088 | $ | 206,916 | $ | 369,818 | |||||||
Weighted average diluted shares of common stock outstanding | 244,376 | 249,729 | 248,308 | 249,652 | |||||||||||
Adjusted net income attributable to Pilgrim's per common diluted share | $ | 0.66 | $ | 0.45 | $ | 0.83 | $ | 1.48 |
(a) Net tax expense (benefit) of adjustments represents the tax impact of all adjustments shown above with the exclusion of the DOJ antitrust fine as this item is non-deductible for tax purposes.
Adjusted EPS is calculated by dividing the adjusted net income attributable to Pilgrim's stockholders by the weighted average number of diluted shares. Management believes that Adjusted EPS provides useful supplemental information about our operating performance and enables comparison of our performance between periods because certain costs shown below are not indicative of our current operating performance. A reconciliation of
Reconciliation of GAAP EPS to Adjusted EPS | |||||||||||||||
(Unaudited) | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
(In thousands, except per share data) | |||||||||||||||
GAAP EPS | $ | 0.14 | $ | 0.44 | $ | 0.38 | $ | 1.46 | |||||||
Adjustments: | |||||||||||||||
Acquisition charges and restructuring activity | — | — | — | — | |||||||||||
DOJ agreement | 0.45 | — | 0.45 | — | |||||||||||
Hometown Strong commitment | 0.06 | — | 0.06 | — | |||||||||||
Foreign currency transaction losses (gains) | 0.04 | 0.01 | (0.02 | ) | 0.03 | ||||||||||
Net tax impact of adjustments(a) | (0.02 | ) | — | (0.04 | ) | (0.01 | ) | ||||||||
Adjusted EPS | $ | 0.66 | $ | 0.45 | $ | 0.84 | $ | 1.48 | |||||||
Weighted average diluted shares of common stock outstanding | 244,376 | 249,729 | 246,898 | 249,652 |
(a) Net tax impact of adjustments represents the tax impact of all adjustments shown above with the exclusion of the DOJ antitrust fee as this item is non-deductible for tax purposes.
Supplementary Selected Segment and Geographic Data | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
(In thousands) | ||||||||||||||||
Sources of net sales by geographic region of origin: | ||||||||||||||||
US | $ | 1,894,222 | $ | 1,931,657 | $ | 5,619,791 | $ | 5,732,201 | ||||||||
845,677 | 517,531 | 2,425,140 | 1,568,396 | |||||||||||||
335,222 | 328,782 | 929,141 | 1,045,133 | |||||||||||||
Total net sales | $ | 3,075,121 | $ | 2,777,970 | $ | 8,974,072 | $ | 8,345,730 | ||||||||
Sources of cost of sales by geographic region of origin: | ||||||||||||||||
US | $ | 1,711,089 | $ | 1,739,474 | $ | 5,210,534 | $ | 5,123,278 | ||||||||
785,347 | 474,490 | 2,256,034 | 1,452,254 | |||||||||||||
265,078 | 281,833 | 897,163 | 901,271 | |||||||||||||
Elimination | (235 | ) | (24 | ) | (459 | ) | (72 | ) | ||||||||
Total cost of sales | $ | 2,761,279 | $ | 2,495,773 | $ | 8,363,272 | $ | 7,476,731 | ||||||||
Sources of gross profit by geographic region of origin: | ||||||||||||||||
US | $ | 183,133 | $ | 192,183 | $ | 409,257 | $ | 608,923 | ||||||||
60,330 | 43,041 | 169,106 | 116,142 | |||||||||||||
70,144 | 46,949 | 31,978 | 143,862 | |||||||||||||
Elimination | 235 | 24 | 459 | 72 | ||||||||||||
Total gross profit | $ | 313,842 | $ | 282,197 | $ | 610,800 | $ | 868,999 | ||||||||
Sources of operating income by geographic region of origin: | ||||||||||||||||
US | $ | 2,451 | $ | 125,168 | $ | 126,951 | $ | 426,968 | ||||||||
29,949 | 25,325 | 76,324 | 62,233 | |||||||||||||
61,653 | 37,668 | 2,229 | 115,503 | |||||||||||||
Elimination | 235 | 24 | 459 | 72 | ||||||||||||
Total operating income | $ | 94,288 | $ | 188,185 | $ | 205,963 | $ | 604,776 |
Source: Pilgrim's Pride Corporation