This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Pilgrim's Pride Reports Solid Conclusion To Fiscal 2012

To pre-register, go to: http://services.choruscall.com/links/ppc130215.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 2, 2013.

About Pilgrim's Pride

Pilgrim's employs approximately 38,000 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.

PILGRIM'S PRIDE CORPORATION
Consolidated Balance Sheets
     
  December 30 December 25
  2012 2011
     
  (In thousands)
     
Cash and cash equivalents  $ 68,180  $ 41,609
Restricted cash and cash equivalents  --  7,680
Investment in available-for-sale securities  --  157
Trade accounts and other receivables, less allowance for doubtful accounts  384,930  349,222
Account receivable from JBS USA, LLC  1,514  21,198
Inventories  950,296  879,094
Income taxes receivable  54,719  59,067
Prepaid expenses and other current assets  56,047  52,350
Assets held for sale  27,042  53,816
Total current assets  1,542,728  1,464,193
Investment in available-for-sale securities  --  497
Deferred tax assets  97,431  71,099
Other long-lived assets  45,523  57,921
Identified intangible assets, net  38,266  44,083
Property, plant and equipment, net  1,189,921  1,241,752
Total assets  $ 2,913,869  $ 2,879,545
     
Accounts payable  $ 312,365  $ 328,864
Account payable to JBS USA, LLC  13,436  11,653
Accrued expenses and other current liabilities  283,540  281,797
Income taxes payable  468  --
Current deferred tax liabilities  104,482  79,248
Current maturities of long-term debt  15,886  15,611
Total current liabilities  730,177  717,173
Long-term debt, less current maturities  1,148,870  1,408,001
Note payable to JBS USA Holdings, Inc.  --  50,000
Other long-term liabilities  125,825  145,941
Total liabilities  2,004,872  2,321,115
Common stock  2,590  2,143
Additional paid-in capital  1,642,003  1,443,484
Accumulated deficit  (669,711)  (843,945)
Accumulated other comprehensive loss  (68,511)  (46,070)
Total Pilgrim's Pride Corporation stockholders' equity  906,371  555,612
Noncontrolling interest  2,626  2,818
Total stockholders' equity  908,997  558,430
Total liabilities and stockholders' equity  $ 2,913,869  $ 2,879,545
 
PILGRIM'S PRIDE CORPORATION
Consolidated Statements of Operations
     
         
  Three Months Ended Twelve Months Ended
  December 30 December 25 December 30 December 25
  2012 2011 2012 2011
  (In thousands) (In thousands)
         
Net sales  $ 2,189,661  $ 1,829,308  $ 8,121,382  $ 7,535,698
Costs and expenses:        
Cost of sales  2,114,118  1,809,120  7,685,550  7,675,277
Operational restructuring charges  --  --  --  1,958
Gross profit (loss)  75,543  20,188  435,832  (141,537)
         
Selling, general and administrative expense  45,564  48,652  177,041  205,143
Administrative restructuring charges, net  2,528  14,589  8,449  26,911
Operating income (loss)  27,451  (43,053)  250,342  (373,591)
         
Interest expense  26,496  28,668  104,926  111,532
Interest income  (511)  (154)  (1,397)  (1,465)
Foreign currency transaction losses (gains)  607  1,366  (4,810)  12,601
Miscellaneous, net  (1,167)  (2,896)  (1,439)  (9,133)
         
Income (loss) before income taxes  2,026  (70,037)  153,062  (487,126)
Income tax expense (benefit)  (20,324)  15,026  (20,980)  8,564
Net income (loss)  22,350  (85,063)  174,042  (495,690)
Less: Net income (loss) attributable to noncontrolling interests  (423)  292  (192)  1,082
Net income (loss) attributable to Pilgrim's Pride Corporation  $ 22,773  $ (85,355)  $ 174,234  $ (496,772)
         
Weighted average shares of common stock outstanding:        
Basic  258,726  224,996  250,101  214,282
Diluted  258,887  224,996  250,216  214,282
         
Net income (loss) per share of common stock outstanding:        
Basic  $ 0.09  $ (0.40)  $ 0.70  $ (2.21)
Diluted  $ 0.09  $ (0.40)  $ 0.70  $ (2.21)
 
PILGRIM'S PRIDE CORPORATION
Consolidated Statements of Cash Flows
     
  Twelve Months Ended  
  December 30 December 25
  2012 2011
  (In thousands)  
Cash flows from operating activities:    
Net income (loss)  $ 174,042  $ (495,690)
Adjustments to reconcile net income (loss) attributable to Pilgrim's Pride Corporation to cash provided by (used in) operating activities:    
Depreciation and amortization  147,414  209,061
Asset impairment  2,770  22,895
Foreign currency transaction losses (gains)  (5,261)  9,980
Accretion of bond discount  456  453
Gain on property disposals  5,306  (4,271)
Share-based compensation  684  567
Deferred income tax benefit (1,098)  (7,097)
Changes in operating assets and liabilities:    
Restricted cash and cash equivalents  12,680  53,273
Trade accounts and other receivables  (14,137)  (63,987)
Inventories  (65,870)  122,827
Prepaid expenses and other current assets  (2,600)  27,068
Accounts payable and accrued expenses  (16,520)  (7,274)
Income taxes  (33,714)  4,683
Deposits  1,783  2,174
Long-term pension and other postretirement obligations  (2,700)  —
Other  (3,611)  (3,653)
Cash provided by (used in) operating activities  199,624  (128,991)
Cash flows from investing activities:    
Acquisitions of property, plant and equipment  (90,327)  (135,968)
Purchases of investment securities  (162)  (4,596)
Proceeds from sale or maturity of investment securities  688  15,852
Proceeds from business disposition to Swift Pork Company  —  13,000
Proceeds from business disposition to JBS Trading International, Inc.  —  24,479
Proceeds from property sales and disposals  29,400  29,044
Cash used in investing activities  (60,401)  (58,189)
Cash flows from financing activities:    
Payments on notes payable to JBS USA  (50,000)  —
Proceeds from notes payable to JBS USA  —  50,000
Proceeds from long-term debt  851,400  965,689
Payments on long-term debt  (1,110,711)  (881,833)
Proceeds from sale of common stock  198,282  —
Purchase of remaining interest in subsidiary  —  (2,504)
Payment of capitalized loan costs  —  (4,395)
Other financing activities  —  (107)
Cash provided by (used in) financing activities  (111,029)  126,850
Effect of exchange rate changes on cash and cash equivalents  (1,623)  (4,138)
Increase (decrease) in cash and cash equivalents  26,571  (64,468)
Cash and cash equivalents, beginning of period  41,609  106,077
Cash and cash equivalents, end of period  68,180  41,609

PILGRIM'S PRIDE CORPORATION Selected Financial Information (Unaudited)

NOTE: "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, reorganization items and loss on early extinguishment of debt less net income attributable to noncontrolling interests. 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 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.

  Three Months Ended Twelve Months Ended
  December 30 December 25 December 30 December 25
  2012 2011 2012 2011
  (In thousands) (In thousands)
         
Net income (loss) from continuing operations  $ 22,350  $ (85,063)  $ 174,042  $ (495,690)
Add:        
Income tax expense (benefit)  (20,325)  15,026  (20,980)  8,564
Interest expense, net  25,985  28,514  103,529  110,067
Depreciation and amortization  39,088  52,355  147,414  211,780
Minus:        
Amortization of capitalized loan costs  2,658  2,515  10,063  9,522
EBITDA  64,439  8,317  393,941  (174,801)
Add:        
Restructuring charges  2,528  14,589  8,449  30,634
Minus:        
 Net income (loss) attributable to noncontrolling interests  (423)  292  (192)  1,082
Adjusted EBITDA  $ 67,391  $ 22,614  $ 402,583  $ (145,249)
 
PILGRIM'S PRIDE CORPORATION
Supplementary Selected Segment and Geographic Data
         
  Twelve Months Ended    
  December 30 December 25    
  2012 2011    
Net sales to customers by country of origin:  (In thousands)    
US:        
Prepared chicken  $ 2,239,289  $ 2,135,337    
Fresh chicken  3,583,854  3,160,429    
Export and other chicken by-products  817,723  808,038    
Other products  608,619  674,923    
Total US net sales:  7,249,485  6,778,727    
         
Mexico:        
Chicken  758,023  720,333    
Other products  113,874  36,638    
Total Mexico net sales  871,897  756,971    
         
Total net sales  $ 8,121,382  $ 7,535,698    
         
         
  Three Months Ended Twelve Months Ended
  December 30 December 25 December 30 December 25
  2012 2011 2012 2011
  (In thousands) (In thousands)
Net sales to customers by country of origin:       
US:  $ 1,937,207  $ 1,645,434  $ 7,249,485  $ 6,778,727
Mexico:  252,455  183,874  871,897  756,971
Total net sales  $ 2,189,662  $ 1,829,308  $ 8,121,382  $ 7,535,698
         
Cost of sales by country of origin:         
US:  $ 1,893,170  $ 1,621,653  $ 6,916,874  $ 6,936,970
Mexico:  220,949  187,467  768,676  738,307
Total net sales  $ 2,114,119  $ 1,809,120  $ 7,685,550  $ 7,675,277
         
Components of gross profit        
US:  $ 44,037  $ 23,781  $ 332,611  $ (158,243)
US - Operational Restructuring:  --  --  --  (3,304)
Mexico:  31,506  (3,593)  103,221  18,663
Total net sales  $ 75,543  $ 20,188  $ 435,832  $ (142,884)
CONTACT: Rosemary Geelan
         Pilgrim's Pride Corp Investor Relations
         Rosemary.geelan@pilgrims.com
         (970) 506-8192

2 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,976.11 -107.69 -0.63%
S&P 500 1,978.39 -9.59 -0.48%
NASDAQ 4,440.3530 -31.7550 -0.71%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs