EX-99.1 2 ex99_1.htm EX99_1 ex99_1.htm
Pilgrim's Pride Corporation
 
Net Sales by Primary Market Line
 
for Quarter 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.
 
 
   
June 30,
   
July 1,
 
   
2007
   
2006
 
   
(in thousands)
 
Chicken Sales:
           
United States
           
    Prepared Foods:
           
           Foodservice
  $
493,872
    $
390,845
 
           Retail
  $
147,835
    $
83,235
 
                      Total Prepared Foods
  $
641,707
    $
474,080
 
                 
    Fresh Chicken:
               
           Foodservice
  $
670,203
    $
345,131
 
           Retail
  $
298,055
    $
122,912
 
                      Total Fresh Chicken
  $
968,258
    $
468,043
 
    Export and Other
               
        Export:
               
           Prepared Foods
  $
24,358
    $
16,314
 
           Chicken
  $
168,514
    $
58,457
 
           Total Export (a)
  $
192,872
    $
74,772
 
         Other Chicken By Products
  $
6,481
    $
3,024
 
                      Total Export and Other
  $
199,353
    $
77,795
 
                      Total U.S. Chicken
  $
1,809,318
    $
1,019,918
 
                 
    Mexico:
  $
131,637
    $
106,996
 
                      Total Chicken Sales
  $
1,940,954
    $
1,126,915
 
                 
                      Total Prepared Foods
   
666,065
     
490,394
 
                 
Turkey Sales:
               
    Prepared Foods:
               
           Foodservice
  $
440
    $
823
 
           Retail
  $
55
    $
187
 
                      Total Prepared Foods
  $
495
    $
1,011
 
                 
    Fresh Turkey:
               
           Foodservice
  $
3,092
    $
1,559
 
           Retail
  $
13,761
    $
11,988
 
                      Total Fresh Turkey
  $
16,853
    $
13,547
 
    Export and Other
               
        Export:
               
           Prepared Foods
  $
122
    $
26
 
           Turkey
  $
1,218
    $
995
 
           Total Export (a)
  $
1,340
    $
1,021
 
        Other Turkey By Products
  $
226
    $
174
 
                     Total Export and Other
  $
1,566
    $
1,194
 
                     Total Turkey Sales
  $
18,914
    $
15,752
 
                 
                     Total Prepared Foods
  $
617
    $
1,037
 
                 
Sale of Other Products
         
           U.S.
  $
152,765
    $
137,997
 
           Mexico
  $
5,753
    $
6,982
 
                          Total Other Products
  $
158,517
    $
144,979
 
Total Net Sales
  $
2,118,386
    $
1,287,646
 




   
June 30,
   
July 1,
 
   
2007
   
2006
 
             
Chicken Sales:
           
U.S. Chicken Sales:
           
    Prepared Foods:
           
           Foodservice
    27.3 %     38.3 %
           Retail
    8.2 %     8.2 %
                           Total Prepared Foods
    35.5 %     46.5 %
                 
    Fresh Chicken:
               
             Foodservice
    37.0 %     33.8 %
             Retail
    16.5 %     12.1 %
                           Total Fresh Chicken
    53.5 %     45.9 %
    Export and Other
               
        Export:
               
           Prepared Foods
    1.3 %     1.6 %
           Chicken
    9.3 %     5.7 %
           Total Export (a)
    10.7 %     7.3 %
        Other Chicken By Products
    0.4 %     0.3 %
    Export and Other
    11.0 %     7.6 %
                          Total U.S. Chicken
    100.0 %     100.0 %
                 
                 
                 
Turkey Sales:
               
U.S. Turkey Sales:
               
    Prepared Foods:
               
           Foodservice
    2.3 %     5.2 %
           Retail
    0.3 %     1.2 %
                          Total Prepared Foods
    2.6 %     6.4 %
                 
    Fresh Turkey:
               
           Foodservice
    16.3 %     9.9 %
           Retail
    72.8 %     76.1 %
                          Total Fresh Turkey
    89.1 %     86.0 %
    Export and Other
               
        Export:
               
           Prepared Foods
    0.6 %     0.2 %
           Turkey
    6.4 %     6.3 %
           Total Export (a)
    7.1 %     6.5 %
        Other Turkey By Products
    1.2 %     1.1 %
    Export and Other
    8.3 %     7.6 %
                          Total U.S. Turkey
    100.0 %     100.0 %
 
 

 

 
Pilgrim's Pride Corporation
Selected Financial Data
for quarter 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.
 

   
06/30/07
 
 
07/01/06
 
             
Income Statement Data:
           
Net sales
  $
2,118,386
    $
1,287,646
 
Non-recurring recoveries
   
-
     
-
 
Turkey restructuring and related charges
   
-
     
-
 
Gross margin
   
235,238
     
42,696
 
Selling, general and administrative expenses
   
98,461
     
69,433
 
Operating income (loss)
   
136,777
      (26,737 )
Interest expense, net
   
40,723
     
11,468
 
Miscellaneous, net
    (2,869 )     (231 )
Income (loss) before income taxes and extraordinary charge
   
98,923
      (37,974 )
Income tax expense (benefit)
   
36,282
      (17,501 )
Income (loss) before extraordinary charge
   
62,641
      (20,473 )
Extraordinary charge - net of tax
   
-
     
-
 
Net income (loss)
  $
62,641
    $ (20,473 )
                 
Per Common Share Data:
               
Income (loss) before extraordinary charge
  $
0.94
    $ (0.31 )
Extraordinary charge - early repayment of debt
   
-
     
-
 
Net Income (loss)
  $
0.94
    $ (0.31 )
Cash dividends
  $
0.023
    $
0.023
 
Book value
  $
16.98
    $
16.90
 
                 
Balance Sheet Summary:
               
Working capital
  $
701,651
    $
438,856
 
Total assets
  $
4,187,550
    $
2,335,571
 
Notes payable and current maturities of long-term debt
  $
3,134
    $
7,768
 
Long-term debt, less current maturities
  $
1,718,774
    $
484,970
 
Total debt
  $
1,721,908
    $
492,738
 
Senior secured debt (included in Total Debt)
  $
-
    $
-
 
Total stockholders' equity
  $
1,130,034
    $
1,124,861
 
                 
Cash Flow Summary:
               
Operating cash flow
  $
108,638
    $
8,558
 
Depreciation & amortization (a)
  $
58,005
    $
34,960
 
Capital expenditures
  $
41,711
    $
26,794
 
Business acquisitions
  $
-
    $
-
 
Financing activities, net
  $ (77,548 )   $ (3,875 )
                 
Cashflow Ratios:
               
EBITDA (b)
  $
196,533
    $
7,977
 
EBITDA (last four qtrs.)
  $
315,198
    $
239,068
 
                 
Key Indicators (as a percentage of net sales):
 
Gross margin
    11.1 %     3.3 %
Selling, general and adminsitrative expenses
    4.6 %     5.4 %
Opertaing income (loss)
    6.5 %     -2.1 %
Interest expense, net
    1.9 %     0.9 %
Net income (loss)
    3.0 %     -1.6 %
 
(a)  Includes amortization of capitalized financing costs of approximately
              1,118
 
477
 
(b) “EBITDA” is defined as the sum of net income (loss) before extraordinary charges, interest, taxes, depreciation and amortization. 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 GAAP results, to compare the performance of companies. EBITDA is not a measurement of financial performance under generally accepted accounting principles and 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 generally accepted accounting principles. EBITDA is calculated as follows:
 

Net Income
  $
62,641
    $ (20,473 )
  Add:
               
       Extraordinary charge-net of tax
   
-
     
-
 
       Income Tax Expense (benefit)
   
36,282
      (17,501 )
       Interest expense, net
   
40,723
     
11,468
 
       Depreciation and amortization
   
58,005
     
34,960
 
  Minus:
               
     Amortization of capitalized financing costs
   
1,118
     
477
 
EBITDA
  $
196,533
    $
7,977
 

 

 

 
Pilgrim's Pride Corporation
 
Sales Segments
 
for Quarters 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.
 
 
   
6/30/2007
   
7/1/2006
 
Net Sales to Customers:
       
Chicken:
           
United States
  $
1,809,317
    $
1,019,918
 
Mexico
   
131,636
     
106,996
 
Sub-total
   
1,940,953
     
1,126,914
 
Turkey
   
18,915
     
15,753
 
Other Products:
               
United States
   
152,766
     
137,997
 
Mexico
   
5,752
     
6,982
 
Sub-total
   
158,518
     
144,979
 
Total
  $
2,118,386
    $
1,287,646
 
                 
Operating Income:
               
Chicken:
               
United States
  $
116,749
    $ (20,158 )
Mexico
   
14,427
      (4,951 )
Sub-total
   
131,176
      (25,109 )
Turkey
    (1,915 )     (3,598 )
Other Products:
               
United States
   
6,668
     
1,597
 
Mexico
   
848
     
373
 
Sub-total
   
7,516
     
1,970
 
Non-recurring recoveries
   
-
     
-
 
Total
  $
136,777
    $ (26,737 )
                 
Depreciation and Amortization: (a)
 
Chicken:
               
United States
  $
53,629
    $
29,400
 
Mexico
   
2,754
     
2,752
 
Sub-total
   
56,383
     
32,152
 
Other Products:
   
404
     
705
 
United States
               
Mexico
   
1,160
     
2,060
 
Sub-total
   
58
     
43
 
Turkey
   
1,218
     
2,103
 
Total
  $
58,005
    $
34,960
 
                 
Total Assets:
               
Chicken:
               
United States
  $
3,619,620
    $
1,874,282
 
Mexico
   
381,981
     
286,890
 
Sub-total
   
4,001,602
     
2,161,172
 
Turkey
   
68,521
     
76,978
 
Other Products:
               
United States
   
113,727
     
87,778
 
Mexico
   
3,700
     
2,211
 
Sub-total
   
117,427
     
89,989
 
Total
  $
4,187,550
    $
2,328,139
 
                 
Capital Expenditures:
         
Chicken:
               
United States
  $
40,307
    $
24,225
 
Mexico
  $
262
    $
1,652
 
Sub-total
   
40,569
     
25,877
 
Turkey
  $
98
    $
81
 
Other Products:
               
United States
   
1,044
     
803
 
Mexico
   
-
     
33
 
Sub-total
   
1,044
     
836
 
Total
  $
41,711
    $
26,794
 
 

(a)   Includes amortization of capitalized financing costs of approximately
   
 
 $
 1,118
  $
477
 



 
 
 

Pilgrim's Pride Corporation
 
Statistical Management Discussion and Analysis
 
for quarters ended:
 
   
Our Statistical Management Discussion and Analysis data is derived from our financial statements and internal reports. 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.
 

 
06/30/07
 
07/01/06
U.S. Chicken
     
       
U.S. Chicken Sales (000's)
 $           1,809,318
 
 $           1,019,918
U.S. Chicken Sales divided by U.S.Chicken Net Pounds Produced
$0.8420
 
$0.6965
U.S. Chicken Sales divided by U.S.Chicken Pounds Sold
$0.9325
 
$0.7695
       
U.S. Chicken Net Pounds Produced (000's)
2,148,848
 
1,464,301
U.S. Chicken Pounds Sold (000's)
1,940,206
 
1,325,452
       
U.S. Chicken Operating Income (000's) (e)
                 116,748
 
                  (20,158)
U.S. Chicken Operating Income as a percent of U.S. Chicken Sales
6.45%
 
-1.98%
       
Turkey
     
       
U.S. Turkey Sales (000's)
18,915
 
15,753
U.S. Turkey Sales divided by U.S. Turkey Net Pounds Produced
$0.5084
 
$0.4312
U.S. Turkey Sales divided by U.S. Turkey Pounds Sold
$0.7802
 
$0.7399
       
U.S. Turkey Operating Income (000's)
(1,915)
 
(3,598)
U.S. Turkey Operating Income as a percent of U.S. Turkey Sales
-10.12%
 
-22.84%
       
U.S. Turkey Net Pounds Produced (000's)
37,205
 
36,533
U.S. Turkey Pounds Sold (000's)
24,243
 
21,291
       
       
U.S. Other
     
       
U.S. Other Sales
152,765
 
137,997
       
U.S. Other Operating Income
                     6,669
 
                     1,597
U.S. Distribution and Other Operating Income as a percent of U.S. Distribution Sales
4.37%
 
1.16%
       
U.S. Summary
     
       
U.S. Sales (000's)
1,980,998
 
1,173,668
U.S. Cost of Sales (000's)
1,768,059
 
1,133,606
U.S. Gross Margin (000's)
212,939
 
40,062
U.S. Gross Margin as a percent of U.S. Sales
10.75%
 
3.41%
       
U.S. Selling, General and Administrative Expenses (000's)
91,437
 
62,221
U.S. Selling, General and Administrative Expenses as a percent of U.S Sales
4.62%
 
5.30%
       
Restructuring and Related Charges - Turkey
                           -
 
                           -
Insurance Proceeds - Turkey
                           -
 
                           -
Vitamin Settlements (000's)
                           -
 
                           -
       
U.S. Operating Income (000's)
121,502
 
(22,159)
U.S. Operating Income as a percent of U.S. Sales
6.13%
 
-1.89%
       
Mexico Chicken
     
       
Mexico Chicken Sales (000's)
131,636
 
106,996
Mexico Chicken  Sales divided by Mexico Chicken Net Pounds Produced
$0.7749
 
$0.6340
Mexico Chicken  Sales divided by Mexico Chicken Pounds Sold
$0.7749
 
$0.6022
       
Mexico Net Pounds Produced (000's)
169,868
 
168,767
Mexico Net Pounds Sold (000's)
169,867
 
177,661
       
Mexico Other
     
       
Mexico Other Sales (000's)
5,752
 
6,982
       
Mexico Summary
     
       
Mexico Sales (000's)
                 137,388
 
                 113,978
Mexico Cost of Sales (000's)
                 115,089
 
                 111,344
Mexico Gross Margin (000's)
                   22,299
 
                     2,634
Mexico Gross Margin as a percent of Mexico Sales
16.2%
 
2.3%
       
Mexico Selling, General and Administrative Expenses (000's)
                     7,024
 
                     7,212
Mexico Selling, General and Administrative Expenses as a percent of Mexico Sales
5.1%
 
6.3%
       
Mexico Operating Income (000's)
                   15,275
 
                    (4,578)
Mexico Operating Income as a percent of Mexico Sales
11.1%
 
-4.0%
       
Consolidated Operations
     
Chicken Operations:
     
Chicken Sales from all Divisions (000's)
1,940,954
 
1,126,914
Chicken Sales from all divisions divided by Chicken Net Pounds Produced from all Divisions
$0.8371
 
$0.6901
Chicken Sales from all divisions divided by Chicken Pounds Sold from all Divisions
$0.9199
 
$0.7497
       
Chicken Net Pounds Produced from all Divisions (000's)
2,318,716
 
1,633,068
Chicken Pounds Sold from all Divisions (000's)
2,110,073
 
1,503,113
       
       
Turkey Operations:
     
U.S. Turkey Sales (000's)
18,915
 
15,753
U.S. Turkey Sales divided by U.S. Turkey Net Pounds Produced
$0.5084
 
$0.4312
U.S. Turkey Sales divided by U.S. Turkey Pounds Sold
$0.7802
 
$0.7399
       
U.S. Turkey Net Pounds Produced (000's)
37,205
 
36,533
U.S. Turkey Pounds Sold (000's)
24,243
 
21,291
       
       
Other Operations:
     
Other Sales (000's)
158,517
 
144,979
       
       
Totals All Operations:
     
Total Net Sales (000's)
2,118,386
 
1,287,646
Total Cost of Sales (000's)
1,883,148
 
1,244,950
Gross Margin from all operations (000's)
235,238
 
42,696
Gross Margin from all operations as a percent of Total Net Sales
11.10%
 
3.32%
       
Total Selling, General and Administrative Expenses (000's)
98,461
 
69,433
Total Selling, General and Administrative Expenses as a percent of Total Net Sales
4.65%
 
5.39%
       
Operating Income from all operations (000's)
136,777
 
(26,737)
Operating Income from all operations as a percent of Total Net Sales
6.46%
 
-2.08%
       
Consolidated Adjusted Operating Income (000's)
                 136,777
 
                  (26,737)
Consolidated Adjusted Operating Income as a percent of Total Net Sales
6.46%
 
-2.08%
 
 
 

 

Pilgrim's Pride Corporation
 
Proforma Statistical Management Discussion and Analysis (a)
 
for quarters ended:
 
   
Our Statistical Management Discussion and Analysis data is derived from our financial statements and internal reports. 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.
 

($ in thousands )
     
   
07/01/06
 
U.S. Chicken
     
       
U.S. Chicken Sales (000's)
  $
1,509,354
 
U.S. Chicken Sales divided by U.S.Chicken Net Pounds Produced
  $
0.6663
 
U.S. Chicken Sales divided by U.S.Chicken Pounds Sold
  $
0.7578
 
         
U.S. Chicken Net Pounds Produced (000's)
   
2,265,273
 
U.S. Chicken Pounds Sold (000's)
   
1,991,650
 
         
U.S. Chicken Operating Income (000's)
    (41,251 )
U.S. Chicken Operating Income as a percent of U.S. Chicken Sales
    -2.73 %
         
Turkey
       
         
U.S. Turkey Sales (000's)
   
15,901
 
U.S. Turkey Sales divided by U.S. Turkey Net Pounds Produced
 
$
0.4353
 
U.S. Turkey Sales divided by U.S. Turkey Pounds Sold
  $
0.7351
 
         
U.S. Turkey Operating Income (000's)
    (3,598 )
U.S. Turkey Operating Income as a percent of U.S. Turkey Sales
    -22.63 %
         
U.S. Turkey Net Pounds Produced (000's)
   
36,533
 
U.S. Turkey Pounds Sold (000's)
   
21,630
 
         
         
U.S. Other
       
         
U.S. Other Sales
   
151,837
 
         
U.S. Other Operating Income
   
1,704
 
U.S. Distribution and Other Operating Income as a percent of U.S. Distribution Sales
    1.12 %
         
U.S. Summary
       
         
U.S. Sales (000's)
   
1,677,092
 
U.S. Cost of Sales (000's)
   
1,632,427
 
U.S. Gross Margin (000's)
 
 
44,665
 
U.S. Gross Margin as a percent of U.S. Sales
    2.66 %
         
U.S. Selling, General and Administrative Expenses (000's)
   
87,810
 
U.S. Selling, General and Administrative Expenses as a percent of U.S Sales
    5.24 %
         
Restructuring and Related Charges - Turkey
   
-
 
         
U.S. Operating Income (000's)
    (43,145 )
U.S. Operating Income as a percent of U.S. Sales
    -2.57 %
         
Mexico Chicken
       
         
Mexico Chicken Sales (000's)
   
106,996
 
Mexico Chicken  Sales divided by Mexico Chicken Net Pounds Produced
  $
0.6340
 
Mexico Chicken  Sales divided by Mexico Chicken Pounds Sold
  $
0.6022
 
         
Mexico Net Pounds Produced (000's)
   
168,767
 
Mexico Net Pounds Sold (000's)
   
177,661
 
         
Mexico Other
       
         
Mexico Other Sales (000's)
   
6,982
 
         
Mexico Summary
       
         
Mexico Sales (000's)
   
113,978
 
Mexico Cost of Sales (000's)
   
111,344
 
Mexico Gross Margin (000's)
   
2,634
 
Mexico Gross Margin as a percent of Mexico Sales
    2.3 %
         
Mexico Selling, General and Administrative Expenses (000's)
   
7,212
 
Mexico Selling, General and Administrative Expenses as a percent of Mexico Sales
    6.3 %
         
Mexico Operating Income (000's)
    (4,578 )
Mexico Operating Income as a percent of Mexico Sales
    -4.0 %
         
Consolidated Operations
       
Chicken Operations:
       
Chicken Sales from all Divisions (000's)
   
1,616,350
 
Chicken Sales from all divisions divided by Chicken Net Pounds Produced from all Divisions
  $
0.6641
 
Chicken Sales from all divisions divided by Chicken Pounds Sold from all Divisions
  $
0.7451
 
         
Chicken Net Pounds Produced from all Divisions (000's)
   
2,434,040
 
Chicken Pounds Sold from all Divisions (000's)
   
2,169,311
 
         
         
Turkey Operations:
       
U.S. Turkey Sales (000's)
   
15,901
 
U.S. Turkey Sales divided by U.S. Turkey Net Pounds Produced
  $
0.4353
 
U.S. Turkey Sales divided by U.S. Turkey Pounds Sold
  $
0.7351
 
         
U.S. Turkey Net Pounds Produced (000's)
   
36,533
 
U.S. Turkey Pounds Sold (000's)
   
21,630
 
         
         
Other Operations:
       
Other Sales (000's)
   
158,819
 
         
         
Totals All Operations:
       
Total Net Sales (000's)
   
1,791,070
 
Total Cost of Sales (000's)
   
1,743,771
 
Gross Margin from all operations (000's)
   
47,299
 
Gross Margin from all operations as a percent of Total Net Sales
 
  2.64 %
         
Total Selling, General and Administrative Expenses (000's)
   
95,022
 
Total Selling, General and Administrative Expenses as a percent of Total Net Sales
 
  5.31 %
         
Restructuring and Related Charges - Turkey
   
-
 
         
Operating Income from all operations (000's)
    (47,723 )
Operating Income from all operations as a percent of Total Net Sales
 
  -2.66 %