| Pilgrim's Pride Corporation | |
| Net Sales by Primary Market Line | |
| for the Three Months Ended: | |
| The following table sets forth net sales attributable to each of our primary product lines and markets served with those products. We based the table on our internal sales reports and their classification of product types and customers. The information in these tables should be read in conjunction with the information in our SEC filings, including the discussion of our primary product lines and markets served with those products included in our most recent Annual Report on Form 10-K. |
| (in thousands) | Dec 27, | Dec 27, | ||||||
| 2009 | 2008 (a) | |||||||
| Chicken Sales: | ||||||||
| United States | ||||||||
| Prepared Foods: | ||||||||
| Foodservice | $ | 420,944 | $ | 494,169 | ||||
| Retail | $ | 114,866 | $ | 123,784 | ||||
| Total Prepared Foods | $ | 535,810 | $ | 617,953 | ||||
| Fresh Chicken: | ||||||||
| Foodservice | $ | 437,782 | $ | 564,544 | ||||
| Retail | $ | 225,636 | $ | 222,029 | ||||
| Total Fresh Chicken | $ | 663,418 | $ | 786,573 | ||||
| Export and Other | ||||||||
| Export: | ||||||||
| Prepared Foods | $ | 21,353 | $ | 22,898 | ||||
| Chicken | $ | 110,197 | $ | 154,430 | ||||
| Total Export | $ | 131,550 | $ | 177,328 | ||||
| Other Chicken By Products | $ | 3,427 | $ | 5,110 | ||||
| Total Export and Other | $ | 134,976 | $ | 182,438 | ||||
| Total U.S. Chicken | $ | 1,334,204 | $ | 1,586,964 | ||||
| Mexico: | $ | 127,557 | $ | 145,242 | ||||
| Total Chicken Sales | $ | 1,461,761 | $ | 1,732,207 | ||||
| Total Prepared Foods | $ | 557,163 | $ | 640,851 | ||||
| Sale of Other Products | ||||||||
| U.S. | $ | 132,500 | $ | 135,594 | ||||
| Mexico | $ | 8,473 | $ | 9,191 | ||||
| Total Other Products | $ | 140,973 | $ | 144,784 | ||||
| Total Net Sales | $ | 1,602,734 | $ | 1,876,991 | ||||
| Dec 27, | Dec 27, | |||||||
| 2009 | 2008 (a) | |||||||
| Chicken Sales: | ||||||||
| U.S. Chicken Sales: | ||||||||
| Prepared Foods: | ||||||||
| Foodservice | 31.5 | % | 31.2 | % | ||||
| Retail | 8.6 | % | 7.8 | % | ||||
| Total Prepared Foods | 40.1 | % | 39.0 | % | ||||
| Fresh Chicken: | ||||||||
| Foodservice | 32.8 | % | 35.6 | % | ||||
| Retail | 16.9 | % | 14.0 | % | ||||
| Total Fresh Chicken | 49.7 | % | 49.6 | % | ||||
| Export and Other | ||||||||
| Export: | ||||||||
| Prepared Foods | 1.6 | % | 1.4 | % | ||||
| Chicken | 8.3 | % | 9.7 | % | ||||
| Total Export | 9.9 | % | 11.1 | % | ||||
| Other Chicken By Products | 0.3 | % | 0.3 | % | ||||
| Total Export and Other | 10.2 | % | 11.4 | % | ||||
| Total U.S. Chicken | 100.0 | % | 100.0 | % | ||||
| Pilgrim's Pride Corporation | ||||||||||||||||||
| Selected Financial Data | ||||||||||||||||||
| for the Three Months Ended: | ||||||||||||||||||
| Our selected financial data is derived from our financial statements. Historical results should not be taken as necessarily indicative of the results that may be expected for any future period. You should read this financial data in conjunction with the appropriate period financial statements and the related notes and "Management's Discussion and Analysis of Results of Operations and Financial Condition" included in our SEC filings. | ||||||||||||||||||
| 12/27/09 | 12/27/2008 (c) | |||||||
| Income Statement Data: | ||||||||
| Net sales | $ | 1,602,734 | $ | 1,876,991 | ||||
| Non-recurring recoveries | - | - | ||||||
| Asset impairment & restructuring charges | 2,877 | - | ||||||
| Gross margin | 82,584 | (83,382 | ) | |||||
| Goodwill Impairment | - | - | ||||||
| Selling, general and administrative expenses | 76,354 | 92,437 | ||||||
| Restructuring and related costs | (1,359 | ) | 2,422 | |||||
| Operating income (loss) | 7,589 | (178,241 | ) | |||||
| Interest expense, net | 44,193 | 39,038 | ||||||
| Miscellaneous, net | (884 | ) | (1,440 | ) | ||||
| Loss on Early Extinguishment of Debt | - | - | ||||||
| Income (loss) before restructuring & income taxes from continuing operations | (35,720 | ) | (215,839 | ) | ||||
| Reorganization items, net | 32,726 | 13,250 | ||||||
| Income tax expense (benefit) | (102,371 | ) | 278 | |||||
| Income (loss) from continuing operations | 33,925 | (229,367 | ) | |||||
| Extraordinary charge - net of tax | - | - | ||||||
| Income(loss) from operation of discontinued business, net of tax | - | 574 | ||||||
| Gain on sale of discontinued business, net of tax | - | - | ||||||
| Net income (loss) | $ | 33,925 | $ | (228,793 | ) | |||
| Per Common Share Data: | ||||||||
| Income (loss) from continuing operations | $ | 0.44 | $ | (3.10 | ) | |||
| Extraordinary charge - early repayment of debt | - | - | ||||||
| Income(loss) from operation of discontinued business, net of tax | - | - | ||||||
| Gain on sale of discontinued business, net of tax | - | 0.01 | ||||||
| Net Income (loss) | $ | 0.44 | $ | (3.09 | ) | |||
| Cash dividends | $ | - | $ | - | ||||
| Book value | $ | 2.41 | $ | 1.64 | ||||
| Balance Sheet Summary: | ||||||||
| Working capital | $ | 658,378 | $ | 757,781 | ||||
| Total assets | $ | 3,209,463 | $ | 3,215,103 | ||||
| Notes payable and current maturities of long-term debt | $ | 238,072 | $ | 101,192 | ||||
| Long-term debt, less current maturities | $ | 1,859,400 | $ | 41,520 | ||||
| Total debt | $ | 2,097,472 | $ | 2,090,565 | ||||
| Senior secured debt (included in Total Debt) | $ | - | $ | - | ||||
| Total stockholders' equity | $ | 186,294 | $ | 123,039 | ||||
| Cash Flow Summary: | ||||||||
| Operating cash flow | $ | (4,057 | ) | $ | (111,737 | ) | ||
Depreciation & amortization (a) | $ | 56,705 | $ | 60,158 | ||||
| Capital expenditures | $ | 30,463 | $ | 29,028 | ||||
| Business acquisitions | $ | - | $ | - | ||||
| Financing activities, net | $ | 48,250 | $ | 119,464 | ||||
| Cashflow Ratios: | ||||||||
EBITDA (b) | $ | 31,015 | $ | (131,437 | ) | |||
| EBITDA (last four qtrs.) | $ | 375,432 | $ | (1,010,348 | ) | |||
| Key Indicators (as a percentage of net sales): | ||||||||
| Gross margin | 5.2 | % | -4.4 | % | ||||
| Selling, general and adminstrative expenses | 4.8 | % | 4.9 | % | ||||
| Operating income (loss) | 0.5 | % | -9.5 | % | ||||
| Interest expense, net | 2.8 | % | 2.1 | % | ||||
| Net income (loss) | 2.1 | % | -12.2 | % | ||||
| (a) Includes amortization of capitalized financing costs of approximately | $ 1,437 | $ 1,544 | |||
| (b) “EBITDA” is defined as the sum of income (loss) from continuing operations plus interest, taxes, depreciation and amortization. “Adjusted EBITDA” is defined as the sum of EBITDA plus restructuring charges and reorganization items. EBITDA is presented because it is used by us 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 from continuing operations. 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. |
| Net Income from continuing operations | $ | 33,925 | $ | (229,367 | ) | |||
| Add: | ||||||||
| Income Tax Expense (benefit) | (102,371 | ) | 278 | |||||
| Interest expense, net | 44,193 | 39,038 | ||||||
| Depreciation and amortization from continued operations | 56,705 | 60,158 | ||||||
| Minus: | ||||||||
| Amortization of capitalized financing costs | 1,437 | 1,544 | ||||||
| EBITDA | $ | 31,015 | $ | (131,437 | ) | |||
| Add: | ||||||||
| Restructuring charges, net | 1,518 | 2,422 | ||||||
| Reorganization items, net | 32,726 | 13,250 | ||||||
| Adjusted EBITDA | $ | 65,259 | $ | (115,765 | ) |
| (c) On December 1, 2008, the company and certain of its subsidiaries filed voluntary petitions for reorganization under Chapter 11 of Title 11 of the United States Code in the United States Bankruptcy Court for the Northern District of Texas, Fort Worth Division. |
| Pilgrim's Pride Corporation | |
| Sales Segments | |
| for Three Months Ended: | |
| Our chicken segment and our sales of other product segment include sales of products that we produce and purchase for resale in the United States and Mexico. Both of these segments conduct separate operations in the United States and Mexico and are reported as two seprarate geographical areas. Our turkey segment includes sales of turkey products produced and purchased for resale. Our turkey operations are exclusively in the United States. | |
| Inter-area sales and inter-segment sales, which are not material, are accounted for at prices comparable to normal trade customer sales. Fixed assets by segment and geographic area are those assets which are used in our operations in each segment or area. Corporate assets are included with chicken and other products. You should read this financial data in conjunction with the appropriate period financial statements and the related notes and "Management's Discussion and Analysis of Results of Operations and Financial Condition" included in our SEC filings. |
| (In thousands) | 12/27/2009 | 12/27/2008 (b) | ||||||
| Net Sales to Customers: | ||||||||
| Chicken: | ||||||||
| United States | $ | 1,334,205 | $ | 1,586,965 | ||||
| Mexico | 127,556 | 136,051 | ||||||
| Sub-total | 1,461,761 | 1,723,016 | ||||||
| Other Products: | ||||||||
| United States | 132,500 | 144,784 | ||||||
| Mexico | 8,473 | 9,191 | ||||||
| Sub-total | 140,973 | 153,975 | ||||||
| Total | $ | 1,602,734 | $ | 1,876,991 | ||||
| Operating Income: | ||||||||
| Chicken: | ||||||||
| United States | $ | 2,956 | $ | (179,448 | ) | |||
| Mexico | (3,655 | ) | (7,217 | ) | ||||
| Sub-total | (699 | ) | (186,665 | ) | ||||
| Other Products: | ||||||||
| United States | 8,199 | 8,965 | ||||||
| Mexico | 1,607 | 1,881 | ||||||
| Sub-total | 9,806 | 10,846 | ||||||
| Operational Restructuring Charges | (2,877 | ) | - | |||||
| Administrative Restructuring Items, net | 1,359 | (2,422 | ) | |||||
| Total | $ | 7,589 | $ | (178,241 | ) | |||
Depreciation and Amortization: (a) | ||||||||
| Chicken: | ||||||||
| United States | $ | 50,216 | $ | 53,609 | ||||
| Mexico | 2,274 | 2,437 | ||||||
| Sub-total | 52,490 | 56,046 | ||||||
| Other Products: | ||||||||
| United States | 4,160 | 4,054 | ||||||
| Mexico | 55 | 58 | ||||||
| Sub-total | 4,215 | 4,112 | ||||||
| Total | $ | 56,705 | $ | 60,158 | ||||
| Total Assets: | ||||||||
| Chicken: | ||||||||
| United States | $ | 2,665,163 | $ | 2,674,592 | ||||
| Mexico | 377,674 | 343,794 | ||||||
| Sub-total | 3,042,837 | 3,018,386 | ||||||
| Other Products: | ||||||||
| United States | 162,927 | 192,708 | ||||||
| Mexico | 3,699 | 4,009 | ||||||
| Sub-total | 166,626 | 196,717 | ||||||
| Total | $ | 3,209,463 | $ | 3,215,103 | ||||
| Capital Expenditures: | ||||||||
| Chicken: | ||||||||
| United States | $ | 30,153 | $ | 18,493 | ||||
| Mexico | 491 | 120 | ||||||
| Sub-total | 30,644 | 18,613 | ||||||
| Other Products: | ||||||||
| United States | (181 | ) | 10,415 | |||||
| Mexico | - | - | ||||||
| Sub-total | (181 | ) | 10,415 | |||||
| Total | $ | 30,463 | $ | 29,028 | ||||
| (a) Includes amortization of capitalized financing costs of approximately | $ 1,437 | $ 1,544 | ||||
| (b) On December 1, 2008, the company and certain of its subsidiaries filed voluntary petitions for reorganization under Chapter 11 of Title 11 of the United States Code in the United States Bankruptcy Court for the Northern District of Texas, Fort Worth Division. |
