Emerging growth company ¨ |
(d) | Exhibits |
TYSON FOODS, INC. | |||
Date: May 7, 2018 | By: | /s/ Stewart Glendinning | |
Name: | Stewart Glendinning | ||
Title: | Executive Vice President and | ||
Chief Financial Officer |
(in millions, except per share data) | Second Quarter | Six Months Ended | |||||||||||||
2018 | 2017 | 2018 | 2017 | ||||||||||||
Sales | $ | 9,773 | $ | 9,083 | $ | 20,002 | $ | 18,265 | |||||||
Operating Income | 498 | 571 | 1,425 | 1,553 | |||||||||||
Net Income | 316 | 341 | 1,948 | 935 | |||||||||||
Less: Net Income Attributable to Noncontrolling Interests | 1 | 1 | 2 | 2 | |||||||||||
Net Income Attributable to Tyson | $ | 315 | $ | 340 | $ | 1,946 | $ | 933 | |||||||
Net Income Per Share Attributable to Tyson | $ | 0.85 | $ | 0.92 | $ | 5.25 | $ | 2.51 | |||||||
Adjusted¹ Operating Income | $ | 694 | $ | 623 | $ | 1,644 | $ | 1,605 | |||||||
Adjusted¹ Net Income Per Share Attributable to Tyson | $ | 1.27 | $ | 1.01 | $ | 3.08 | $ | 2.60 |
• | Record GAAP EPS of $5.25, up 109% from last year; Record Adjusted EPS of $3.08, up 18% from last year |
• | GAAP operating income of $1,425 million, down 8% from last year; Record Adjusted operating income of $1,644 million up 2% from last year |
• | Total Company GAAP operating margin of 7.1%; Adjusted operating margin of 8.2% |
• | Realized $102 million of Financial Fitness Program cost savings |
• | GAAP EPS of $0.85, down 8% from last year; Adjusted EPS of $1.27, up 26% from last year |
• | GAAP operating income of $498 million, down 13% from last year; Adjusted operating income of $694 million, up 11% from last year |
• | Realized $65 million of Financial Fitness Program cost savings |
• | Lower enacted tax rates positively impacted the second quarter and six months Adjusted EPS by $0.17 and $0.38, respectively, and we expect a fiscal 2018 benefit of approximately $0.85 on an adjusted basis |
• | Including the benefit of lower enacted tax rates, Adjusted1 EPS guidance for fiscal 2018 is $6.55-$6.70, which represents an approximate 23-26% increase from fiscal 2017 Adjusted EPS |
Sales | ||||||||||||||||||||
(for the second quarter ended March 31, 2018, and April 1, 2017) | ||||||||||||||||||||
Second Quarter | Six Months Ended | |||||||||||||||||||
Volume | Avg. Price | Volume | Avg. Price | |||||||||||||||||
2018 | 2017 | Change | Change | 2018 | 2017 | Change | Change | |||||||||||||
Beef | $ | 3,681 | $ | 3,487 | 1.8 | % | 3.7 | % | $ | 7,567 | $ | 7,015 | 3.2 | % | 4.5 | % | ||||
Pork | 1,265 | 1,302 | (1.1 | )% | (1.8 | )% | 2,548 | 2,554 | (1.9 | )% | 1.6 | % | ||||||||
Chicken | 2,959 | 2,798 | 2.0 | % | 3.6 | % | 5,956 | 5,504 | 4.6 | % | 3.4 | % | ||||||||
Prepared Foods | 2,147 | 1,751 | 10.9 | % | 10.6 | % | 4,439 | 3,646 | 11.3 | % | 9.4 | % | ||||||||
Other | 82 | 82 | (7.1 | )% | 8.9 | % | 170 | 172 | (5.3 | )% | 4.7 | % | ||||||||
Intersegment Sales | (361 | ) | (337 | ) | n/a | n/a | (678 | ) | (626 | ) | n/a | n/a | ||||||||
Total | $ | 9,773 | $ | 9,083 | 1.9 | % | 5.6 | % | $ | 20,002 | $ | 18,265 | 3.5 | % | 5.8 | % |
Operating Income (Loss) | ||||||||||||||||||||
(for the second quarter ended March 31, 2018, and April 1, 2017) | ||||||||||||||||||||
Second Quarter | Six Months Ended | |||||||||||||||||||
Operating Margin | Operating Margin | |||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | |||||||||||||
Beef | $ | 92 | $ | 126 | 2.5 | % | 3.6 | % | $ | 348 | $ | 425 | 4.6 | % | 6.1 | % | ||||
Pork | 67 | 141 | 5.3 | % | 10.8 | % | 218 | 388 | 8.6 | % | 15.2 | % | ||||||||
Chicken | 231 | 233 | 7.8 | % | 8.3 | % | 503 | 496 | 8.4 | % | 9.0 | % | ||||||||
Prepared Foods | 123 | 87 | 5.7 | % | 5.0 | % | 384 | 277 | 8.7 | % | 7.6 | % | ||||||||
Other | (15 | ) | (16 | ) | n/a | n/a | (28 | ) | (33 | ) | n/a | n/a | ||||||||
Total | $ | 498 | $ | 571 | 5.1 | % | 6.3 | % | $ | 1,425 | $ | 1,553 | 7.1 | % | 8.5 | % |
Adjusted Operating Income (Loss) (Non-GAAP) | ||||||||||||||||||||
(for the second quarter ended March 31, 2018, and April 1, 2017) | ||||||||||||||||||||
Second Quarter | Six Months Ended | |||||||||||||||||||
Adjusted Operating Margin (Non-GAAP) | Adjusted Operating Margin (Non-GAAP) | |||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | |||||||||||||
Beef | $ | 120 | $ | 126 | 3.3 | % | 3.6 | % | $ | 377 | $ | 425 | 5.0 | % | 6.1 | % | ||||
Pork | 79 | 141 | 6.2 | % | 10.8 | % | 231 | 388 | 9.1 | % | 15.2 | % | ||||||||
Chicken | 288 | 233 | 9.7 | % | 8.3 | % | 569 | 496 | 9.6 | % | 9.0 | % | ||||||||
Prepared Foods | 222 | 139 | 10.3 | % | 7.9 | % | 495 | 329 | 11.2 | % | 9.0 | % | ||||||||
Other | (15 | ) | (16 | ) | n/a | n/a | (28 | ) | (33 | ) | n/a | n/a | ||||||||
Total | $ | 694 | $ | 623 | 7.1 | % | 6.9 | % | $ | 1,644 | $ | 1,605 | 8.2 | % | 8.8 | % |
• | Beef - Sales volume increased for the six months and second quarter of fiscal 2018 due to improved availability of cattle supply, stronger demand for our beef products and increased exports. Average sales price increased for the six months and second quarter of fiscal 2018 as demand for our beef products and strong exports outpaced the increase in live cattle supplies. Operating income for the six months and second quarter of fiscal 2018 remained strong, although below prior year's record results, as we continued to maximize our revenues relative to the higher live fed cattle costs, partially offset by increased labor and freight costs and one-time cash bonus to frontline employees of $27 million incurred in the second quarter of fiscal 2018. |
• | Pork - Sales volume decreased for the six months and second quarter of fiscal 2018 as a result of balancing our supply with customer demand during a period of margin compression. Average sales price increased for the six months of fiscal 2018 due to price increases in the first quarter of fiscal 2018 associated with higher livestock costs. In the second quarter of fiscal 2018, average sales price decreased as livestock costs fell. While reduced compared to the prior year record results, operating income for the six months and second quarter of fiscal 2018 remained strong as we maximized our revenues relative to the live hog markets due to operational and mix performance, which were partially offset by margin compression, higher labor and freight costs and one-time cash bonus to frontline employees of $12 million incurred in the second quarter of fiscal 2018. |
• | Chicken - Sales volume was up for the six months and second quarter of fiscal 2018 due to strong demand for our chicken products along with the incremental volume from the AdvancePierre acquisition. Average sales price increased for the six months and second quarter of fiscal 2018 due to sales mix changes. Operating income remained strong for the six months and second quarter of fiscal 2018 as we benefited from $37 million and $23 million, respectively, of Financial Fitness Program cost savings, in addition to positive impacts from incremental AdvancePierre results and slightly lower feed costs, partially offset by increased labor, freight and growout expenses and one-time cash bonus to frontline employees of $51 million incurred in the second quarter of fiscal 2018. |
• | Prepared Foods - Sales volume increased for the six months and second quarter of fiscal 2018 primarily from incremental volume from the AdvancePierre acquisition. Average sales price increased for the six months and second quarter from higher input costs of $90 million and $45 million, respectively, and product mix which was positively impacted by the acquisition of AdvancePierre. Operating income increased for the six months and second quarter of fiscal 2018 due to $62 million and $38 million, respectively, of Financial Fitness Program cost savings, in addition to positive impacts from improved mix and incremental AdvancePierre results, partially offset by higher input and freight costs and one-time cash bonus to frontline employees of $19 million incurred in the second quarter of fiscal 2018. Additionally, operating income was impacted in the second quarter of fiscal 2018 by a $75 million impairment related to the divestiture of non-protein business and was impacted in the second quarter of fiscal 2017 by a $52 million impairment of our San Diego Prepared Foods operation. |
• | Sale of Non-Protein Businesses – On April 24, 2017, we announced our intent to sell three non-protein businesses, Sara Lee® Frozen Bakery, Kettle and Van’s®. Additionally, in the first quarter of fiscal 2018, we made the decision to sell our pizza crust business. All of these non-protein businesses are part of our Prepared Foods segment and are being sold as part of our strategic focus on protein brands. We completed the sale of our Kettle business in the first quarter of fiscal 2018 and used the proceeds of $125 million to pay down debt. We anticipate we will close the remaining transactions in the back half of fiscal 2018. |
• | Beef – We expect industry fed cattle supplies to increase approximately 3% in fiscal 2018 as compared to fiscal 2017. We expect ample supplies in regions where we operate our plants. We believe our Beef segment's adjusted operating margin in fiscal 2018 should be above 6%. |
• | Pork – We expect industry hog supplies to increase approximately 2-3% in fiscal 2018 as compared to fiscal 2017. For fiscal 2018, our Pork segment's adjusted operating margin should be around 8%. |
• | Chicken – AdvancePierre contributed approximately $165 million of revenue in the first six months of fiscal 2018, and we expect incremental revenue of approximately $220 million in fiscal 2018 for a total of approximately $320 million in the first full fiscal year as part of our operation. We expect to capture Financial Fitness Program net savings of approximately $75 million in fiscal 2018, which is a combination of AdvancePierre net synergies and reduction of non-value added costs. USDA projects an increase in chicken production of approximately 2% in fiscal 2018 as compared to fiscal 2017. Based on current futures prices, we expect an increase of approximately $100 million in feed costs in fiscal 2018 compared to fiscal 2017. For fiscal 2018, we believe our Chicken segment sales volume will grow approximately 3-4%, and adjusted operating margins should be similar to fiscal 2017 at around 10%. |
• | Prepared Foods – AdvancePierre contributed approximately $655 million of revenue in the first six months of fiscal 2018, and we expect incremental revenue of approximately $875 million in fiscal 2018 for a total of approximately $1.3 billion in the first full fiscal year as part of our operation. We expect to capture Financial Fitness Program net savings in excess of $125 million in fiscal 2018, which is a combination of AdvancePierre net synergies and reduction of non-value added costs. We currently expect raw material costs to be approximately $30 million higher for fiscal 2018 as compared to fiscal 2017. For fiscal 2018, we expect our Prepared Foods segment sales to grow and adjusted operating margin should be around 11%. |
• | Other – Other includes our foreign operations related to raising and processing live chickens in China and India, third-party merger and integration costs and corporate overhead related to Tyson New Ventures, LLC. We expect Other operating loss should be approximately $50 million in fiscal 2018, excluding the impact of merger and integration expense from the acquisition of AdvancePierre and restructuring and related costs. |
• | Sales – We expect fiscal 2018 sales to grow approximately 6% to between $40-$41 billion which is attributed to incremental AdvancePierre sales of $1.1 billion, an increase in sales volume in our legacy businesses and an improvement in mix predominantly in our Chicken segment. |
• | Capital Expenditures – We expect capital expenditures to approximate $1.3 billion for fiscal 2018. Capital expenditures will include spending for production growth, safety, animal well-being, infrastructure replacements and upgrades, and operational improvements that will result in production and labor efficiencies, yield improvements and sales channel flexibility. |
• | Net Interest Expense – We expect net interest expense to approximate $340 million for fiscal 2018, which includes estimates regarding the timing and net proceeds from the divestitures of our Sara Lee® Frozen Bakery, Van’s® and pizza crust businesses as we intend to use the net sales proceeds to pay down debt. |
• | Liquidity – We expect total liquidity of $1.0 billion or more while total liquidity at March 31, 2018 was slightly below $1.0 billion. |
• | Tax Rate – On December 22, 2017, the President of the United States signed into law the Tax Cuts and Jobs Act. While we continue to assess the impact of this legislation on our business and consolidated financial statements, the legislation reduced the U.S. corporate tax rate from the current rate of 35% to 21%. We expect our adjusted effective tax rate to approximate 24% in fiscal 2018 and 25% in fiscal 2019. |
• | Share Repurchases – We will resume share repurchases, other than to offset dilution from our equity compensation programs, once our leverage nears our net debt to EBITDA target of 2X, which we anticipate will occur during fiscal 2018. |
Three Months Ended | Six Months Ended | ||||||||||||||
March 31, 2018 | April 1, 2017 | March 31, 2018 | April 1, 2017 | ||||||||||||
Sales | $ | 9,773 | $ | 9,083 | $ | 20,002 | $ | 18,265 | |||||||
Cost of Sales | 8,753 | 8,036 | 17,531 | 15,735 | |||||||||||
Gross Profit | 1,020 | 1,047 | 2,471 | 2,530 | |||||||||||
Selling, General and Administrative | 522 | 476 | 1,046 | 977 | |||||||||||
Operating Income | 498 | 571 | 1,425 | 1,553 | |||||||||||
Other (Income) Expense: | |||||||||||||||
Interest income | (2 | ) | (1 | ) | (4 | ) | (3 | ) | |||||||
Interest expense | 86 | 56 | 174 | 114 | |||||||||||
Other, net | (9 | ) | (3 | ) | (10 | ) | 11 | ||||||||
Total Other (Income) Expense | 75 | 52 | 160 | 122 | |||||||||||
Income before Income Taxes | 423 | 519 | 1,265 | 1,431 | |||||||||||
Income Tax Expense (Benefit) | 107 | 178 | (683 | ) | 496 | ||||||||||
Net Income | 316 | 341 | 1,948 | 935 | |||||||||||
Less: Net Income Attributable to Noncontrolling Interests | 1 | 1 | 2 | 2 | |||||||||||
Net Income Attributable to Tyson | $ | 315 | $ | 340 | $ | 1,946 | $ | 933 | |||||||
Weighted Average Shares Outstanding: | |||||||||||||||
Class A Basic | 296 | 295 | 296 | 296 | |||||||||||
Class B Basic | 70 | 70 | 70 | 70 | |||||||||||
Diluted | 370 | 370 | 371 | 371 | |||||||||||
Net Income Per Share Attributable to Tyson: | |||||||||||||||
Class A Basic | $ | 0.88 | $ | 0.95 | $ | 5.42 | $ | 2.59 | |||||||
Class B Basic | $ | 0.78 | $ | 0.86 | $ | 4.87 | $ | 2.35 | |||||||
Diluted | $ | 0.85 | $ | 0.92 | $ | 5.25 | $ | 2.51 | |||||||
Dividends Declared Per Share: | |||||||||||||||
Class A | $ | 0.300 | $ | 0.225 | $ | 0.675 | $ | 0.525 | |||||||
Class B | $ | 0.270 | $ | 0.203 | $ | 0.608 | $ | 0.473 | |||||||
Sales Growth | 7.6 | % | 9.5 | % | |||||||||||
Margins: (Percent of Sales) | |||||||||||||||
Gross Profit | 10.4 | % | 11.5 | % | 12.4 | % | 13.9 | % | |||||||
Operating Income | 5.1 | % | 6.3 | % | 7.1 | % | 8.5 | % | |||||||
Net Income Attributable to Tyson | 3.2 | % | 3.7 | % | 9.7 | % | 5.1 | % | |||||||
Effective Tax Rate | 25.3 | % | 34.3 | % | -54.0 | % | 34.7 | % |
March 31, 2018 | September 30, 2017 | ||||||
Assets | |||||||
Current Assets: | |||||||
Cash and cash equivalents | $ | 198 | $ | 318 | |||
Accounts receivable, net | 1,594 | 1,675 | |||||
Inventories | 3,328 | 3,239 | |||||
Other current assets | 228 | 219 | |||||
Assets held for sale | 642 | 807 | |||||
Total Current Assets | 5,990 | 6,258 | |||||
Net Property, Plant and Equipment | 5,755 | 5,568 | |||||
Goodwill | 9,404 | 9,324 | |||||
Intangible Assets, net | 6,231 | 6,243 | |||||
Other Assets | 711 | 673 | |||||
Total Assets | $ | 28,091 | $ | 28,066 | |||
Liabilities and Shareholders’ Equity | |||||||
Current Liabilities: | |||||||
Current debt | $ | 1,128 | $ | 906 | |||
Accounts payable | 1,485 | 1,698 | |||||
Other current liabilities | 1,217 | 1,424 | |||||
Liabilities held for sale | 8 | 4 | |||||
Total Current Liabilities | 3,838 | 4,032 | |||||
Long-Term Debt | 8,872 | 9,297 | |||||
Deferred Income Taxes | 2,039 | 2,979 | |||||
Other Liabilities | 1,186 | 1,199 | |||||
Total Tyson Shareholders’ Equity | 12,136 | 10,541 | |||||
Noncontrolling Interests | 20 | 18 | |||||
Total Shareholders’ Equity | 12,156 | 10,559 | |||||
Total Liabilities and Shareholders’ Equity | $ | 28,091 | $ | 28,066 |
Six Months Ended | |||||||
March 31, 2018 | April 1, 2017 | ||||||
Cash Flows From Operating Activities: | |||||||
Net income | $ | 1,948 | $ | 935 | |||
Depreciation and amortization | 459 | 356 | |||||
Deferred income taxes | (938 | ) | (28 | ) | |||
Other, net | 132 | 88 | |||||
Net changes in operating assets and liabilities | (462 | ) | (369 | ) | |||
Cash Provided by Operating Activities | 1,139 | 982 | |||||
Cash Flows From Investing Activities: | |||||||
Additions to property, plant and equipment | (559 | ) | (467 | ) | |||
Purchases of marketable securities | (22 | ) | (30 | ) | |||
Proceeds from sale of marketable securities | 21 | 29 | |||||
Acquisition, net of cash acquired | (226 | ) | — | ||||
Proceeds from sale of business | 125 | — | |||||
Other, net | (25 | ) | (10 | ) | |||
Cash Used for Investing Activities | (686 | ) | (478 | ) | |||
Cash Flows From Financing Activities: | |||||||
Payments on debt | (432 | ) | (45 | ) | |||
Borrowings on revolving credit facility | 1,420 | 1,680 | |||||
Payments on revolving credit facility | (1,420 | ) | (1,977 | ) | |||
Proceeds from issuance of commercial paper | 10,837 | 725 | |||||
Repayments of commercial paper | (10,615 | ) | (225 | ) | |||
Purchases of Tyson Class A common stock | (237 | ) | (733 | ) | |||
Dividends | (216 | ) | (158 | ) | |||
Stock options exercised | 87 | 83 | |||||
Other, net | — | 41 | |||||
Cash Used for Financing Activities | (576 | ) | (609 | ) | |||
Effect of Exchange Rate Changes on Cash | 3 | (1 | ) | ||||
Decrease in Cash and Cash Equivalents | (120 | ) | (106 | ) | |||
Cash and Cash Equivalents at Beginning of Year | 318 | 349 | |||||
Cash and Cash Equivalents at End of Period | $ | 198 | $ | 243 |
Six Months Ended | Fiscal Year Ended | Twelve Months Ended | ||||||||||||
March 31, 2018 | April 1, 2017 | September 30, 2017 | March 31, 2018 | |||||||||||
Net income | $ | 1,948 | $ | 935 | $ | 1,778 | $ | 2,791 | ||||||
Less: Interest income | (4 | ) | (3 | ) | (7 | ) | (8 | ) | ||||||
Add: Interest expense | 174 | 114 | 279 | 339 | ||||||||||
Add: Income tax expense (benefit) | (683 | ) | 496 | 850 | (329 | ) | ||||||||
Add: Depreciation | 353 | 314 | 642 | 681 | ||||||||||
Add: Amortization (a) | 101 | 38 | 106 | 169 | ||||||||||
EBITDA | $ | 1,889 | $ | 1,894 | $ | 3,648 | $ | 3,643 | ||||||
Adjustments to EBITDA: | ||||||||||||||
Add: One-time cash bonus to frontline employees | $ | 109 | $ | — | $ | — | $ | 109 | ||||||
Add: AdvancePierre purchase accounting and acquisition related costs (b) | — | — | 103 | 103 | ||||||||||
Add: Impairments net of realized gain associated with the divestiture of non-protein businesses (c) | 79 | — | 45 | 124 | ||||||||||
Add: Restructuring and related charges | 31 | — | 150 | 181 | ||||||||||
Add: San Diego Prepared Foods operation impairment | — | 52 | 52 | 52 | ||||||||||
Total Adjusted EBITDA | $ | 2,108 | $ | 1,946 | $ | 3,998 | $ | 4,212 | ||||||
Pro forma Adjustments to EBITDA: | ||||||||||||||
Add: AdvancePierre adjusted EBITDA (prior to acquisition) (d) | $ | 193 | $ | 48 | ||||||||||
Total Pro forma adjusted EBITDA | $ | 4,191 | $ | 4,260 | ||||||||||
Total gross debt | $ | 10,203 | $ | 10,000 | ||||||||||
Less: Cash and cash equivalents | (318 | ) | (198 | ) | ||||||||||
Less: Short-term investments | (3 | ) | (2 | ) | ||||||||||
Total net debt | $ | 9,882 | $ | 9,800 | ||||||||||
Ratio Calculations: | ||||||||||||||
Gross debt/EBITDA | 2.8x | 2.7x | ||||||||||||
Net debt/EBITDA | 2.7x | 2.7x | ||||||||||||
Gross debt/Adjusted EBITDA | 2.6x | 2.4x | ||||||||||||
Net debt/Adjusted EBITDA | 2.5x | 2.3x | ||||||||||||
Gross debt/Pro forma Adjusted EBITDA | 2.4x | 2.3x | ||||||||||||
Net debt/Pro forma Adjusted EBITDA | 2.4x | 2.3x |
(a) | Excludes the amortization of debt issuance and debt discount expense of $5 million and $4 million for the six months ended March 31, 2018, and April 1, 2017, respectively, $13 million for the fiscal year ended September 30, 2017, and $14 million for the twelve months ended March 31, 2018, as it is included in interest expense. |
(b) | AdvancePierre acquisition and integration costs for the fiscal year 2017 and twelve months ending March 31, 2018, includes $36 million of purchase accounting adjustments, $49 million acquisition related costs and $18 million of acquisition bridge financing fees. |
(c) | For the fiscal year ended September 30, 2017, includes an impairment related to the expected sale of a non-protein business of $45 million in fiscal 2017. The adjustment for the six months ended March 31, 2018 includes $101 million impairments related to the expected sale of a non-protein business net of a $22 million realized pretax gain associated with the sale of a non-protein business. For the twelve months ended March 31, 2018 includes impairments related to the expected sale of non-protein businesses of $146 million net of $22 million realized pretax gain from the sale of a non-protein business. |
(d) | Represents AdvancePierre's pre-acquisition Adjusted EBITDA, for the approximate eight and two months ended prior to the June 7, 2017, closing of the acquisition. These amounts are added to our Adjusted EBITDA for the fiscal year ended September 30, 2017 and the twelve months ended March 31, 2018, in order for Net debt to Adjusted EBITDA to include a full twelve months of AdvancePierre results on a pro forma basis for each of the periods presented. The pro forma adjusted EBITDA was derived from AdvancePierre’s EBITDA from its historical unaudited financial statements for the three months ended December 31, 2016, and April 1, 2017, as filed with the Securities and Exchange Commission, as well as AdvancePierre management unaudited financial information for the period from April 2, 2017, through the June 7, 2017, closing of the acquisition. These amounts were adjusted to remove the impact of its merger, acquisition and public filing expenses as well as related expenses including consultant fees, accelerated stock-based compensation and other deal costs. We believe this pro forma presentation is useful and helps management, investors, and rating agencies enhance their understanding of our financial performance and to better highlight future financial trends on a comparable basis with AdvancePierre results included for the periods presented given the significance of the acquisition to our overall results. |
Second Quarter | Six Months Ended | ||||||||||||||||||||||||||||||
Pretax Impact | EPS Impact | Pretax Impact | EPS Impact | ||||||||||||||||||||||||||||
2018 | 2017 | 2018 | 2017 | 2018 | 2017 | 2018 | 2017 | ||||||||||||||||||||||||
Reported net income per share attributable to Tyson | $ | 0.85 | $ | 0.92 | $ | 5.25 | $ | 2.51 | |||||||||||||||||||||||
Add: One-time cash bonus to frontline employees | $ | 109 | $ | — | 0.22 | — | $ | 109 | $ | — | 0.22 | — | |||||||||||||||||||
Add: Restructuring and related charges | $ | 12 | $ | — | 0.02 | — | $ | 31 | $ | — | 0.06 | — | |||||||||||||||||||
Add: Impairment net of a realized gain associated with the divestiture of non-protein businesses (a) | $ | 75 | $ | — | 0.21 | — | $ | 79 | $ | — | 0.26 | — | |||||||||||||||||||
Add: San Diego Prepared Foods operation impairment | $ | — | $ | 52 | — | 0.09 | $ | — | $ | 52 | — | 0.09 | |||||||||||||||||||
Less: Tax benefit from remeasurement of net deferred tax liabilities at lower enacted tax rates | $ | — | $ | — | (0.03 | ) | — | $ | — | $ | — | (2.71 | ) | — | |||||||||||||||||
Adjusted net income per share attributable to Tyson | $ | 1.27 | $ | 1.01 | $ | 3.08 | $ | 2.60 |
Adjusted Operating Income (Loss) | ||||||||||||||||||
(for the Second quarter ended March 31, 2018) | ||||||||||||||||||
Beef | Pork | Chicken | Prepared Foods | Other | Total | |||||||||||||
Reported operating income (loss) | $ | 92 | $ | 67 | $ | 231 | $ | 123 | $ | (15 | ) | $ | 498 | |||||
Add: One-time cash bonus to frontline employees | 27 | 12 | 51 | 19 | — | 109 | ||||||||||||
Add: Restructuring and related charges | 1 | — | 6 | 5 | — | 12 | ||||||||||||
Add: Impairment associated with the divestiture of a non-protein business | — | — | — | 75 | — | 75 | ||||||||||||
Adjusted operating income (loss) | $ | 120 | $ | 79 | $ | 288 | $ | 222 | $ | (15 | ) | $ | 694 |
Adjusted Operating Income (Loss) | ||||||||||||||||||
(for the Second quarter ended April 1, 2017) | ||||||||||||||||||
Beef | Pork | Chicken | Prepared Foods | Other | Total | |||||||||||||
Reported operating income (loss) | $ | 126 | $ | 141 | $ | 233 | $ | 87 | $ | (16 | ) | $ | 571 | |||||
Add: San Diego Prepared Foods operation impairment | — | — | — | 52 | — | 52 | ||||||||||||
Adjusted operating income (loss) | $ | 126 | $ | 141 | $ | 233 | $ | 139 | $ | (16 | ) | $ | 623 |
Adjusted Operating Income (Loss) | ||||||||||||||||||
(for the Six months ended March 31, 2018) | ||||||||||||||||||
Beef | Pork | Chicken | Prepared Foods | Other | Total | |||||||||||||
Reported operating income (loss) | $ | 348 | $ | 218 | $ | 503 | $ | 384 | $ | (28 | ) | $ | 1,425 | |||||
Add: One-time cash bonus to frontline employees | 27 | 12 | 51 | 19 | — | 109 | ||||||||||||
Add: Restructuring and related charges | 2 | 1 | 15 | 13 | — | 31 | ||||||||||||
Add: Impairment net of a realized gain associated with the divestiture of non-protein businesses (a) | — | — | — | 79 | — | 79 | ||||||||||||
Adjusted operating income (loss) | $ | 377 | $ | 231 | $ | 569 | $ | 495 | $ | (28 | ) | $ | 1,644 |
Adjusted Operating Income (Loss) | ||||||||||||||||||
(for the Six months ended April 1, 2017) | ||||||||||||||||||
Beef | Pork | Chicken | Prepared Foods | Other | Total | |||||||||||||
Reported operating income (loss) | $ | 425 | $ | 388 | $ | 496 | $ | 277 | $ | (33 | ) | $ | 1,553 | |||||
Add: San Diego Prepared Foods operation impairment | — | — | — | 52 | — | 52 | ||||||||||||
Adjusted operating income (loss) | $ | 425 | $ | 388 | $ | 496 | $ | 329 | $ | (33 | ) | $ | 1,605 |