Pilgrim’s Pride Reports Operating Income of $237 Million with an Operating Margin of 11.7% for the Second Quarter of 2016
GREELEY, Colo., July 27, 2016 (GLOBE NEWSWIRE) - Pilgrim’s Pride Corporation (NASDAQ: PPC) reports second quarter 2016 financial results.
Second Quarter Highlights
• | Net Sales of $2.03 billion. |
• | Net Income of $152.9 million, GAAP EPS of $0.60. |
• | Operating Income margins of 9.8% in U.S. and 20.5% in Mexico operations, respectively. |
• | Adjusted EBITDA of $282.7 million (or a 13.9% margin). |
• | Cash Flow From Operations of $111.1 million. |
• | Prepared Foods to launch new ABF veg-fed chicken sausage products, leveraging our leadership in ABF veg-fed Fresh Chicken and entry into organic. |
• | Operational improvements in Prepared Foods operations impacting production in short-term but preparing facilities for long-term growth. |
Unaudited, In Millions, Except Per Share and Percentages | |||||
Thirteen Weeks Ended | |||||
June 26, 2016 | June 28, 2015 | Change | |||
Net Sales | $2,028.3 | $2,053.9 | -1.2% | ||
GAAP EPS | $0.60 | $0.93 | -35.5% | ||
Operating Income | $236.6 | $378.4 | -37.5% | ||
Adjusted EBITDA (1) | $282.7 | $425.8 | -33.6% | ||
Adjusted EBITDA Margin (1) | 13.9% | 20.7% | -6.8pts | ||
(1) | Reconciliations for non-GAAP measures are provided in subsequent sections within this release. |
“During Q2, our results further improved sequentially compared to the last two quarters. While our portfolio strategy of a well-balanced exposure to different bird sizes was an important factor, the diversity of our product and broad customer mix, as well as geographic exposure were also important contributors. We structured our portfolio to capture the strong commodity markets while lessening the impact of weaker markets to generate lower volatility and higher margins over the mid to long-term. We are generating the intended results and created a unique and meaningful advantage over competitors with less breadth in their portfolio,” stated Bill Lovette, Chief Executive Officer of Pilgrim's.
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“To demonstrate our commitment to growing our Prepared Foods operations and to further leverage our leadership in the ABF market as well as our recent announcement to enter into organic Fresh Chicken, we will launch new ABF veg-fed artisanal chicken sausages. These products will be fully cooked, minimally processed using all natural and no artificial ingredients or nitrites. Similar to our ABF veg-fed and organic Fresh Chicken programs, this represents our effort to better resonate with new consumer trends for more natural products while adding further value to our portfolio. While the announced investments in our Moorefield, WV plant, and the operational improvements we are promoting in our other facilities pose an impact to volumes in the short run, they signify our commitment to Prepared Foods as an important source of future earnings growth while lessening the impact of volatile commodity markets in the long run.”
“Our operations in Mexico were a strong contributor to the Q2 results driven by an improved supply/demand environment, better operating performance, and increased synergies with the newly acquired assets. We are continuing to close and have meaningfully narrowed the gap in performance between our legacy and the newly acquired Northern Mexico operations. To further diversify our Mexico operations and grow our value-added segment, we are initiating a strategy to leverage our premium Pilgrim’s name while continuing to pursue opportunities through the popular Del Dia brand.”
Conference Call Information
A conference call to discuss Pilgrim’s quarterly results will be held tomorrow, July 28, at 7:00 a.m. MT (9 a.m. ET). Participants are encouraged to pre-register for the conference call using the link below. Callers who pre-register will be given a unique PIN to gain immediate access to the call and bypass the live operator. Participants may pre-register at any time, including up to and after the call start time.
To pre-register, go to: http://services.choruscall.com/links/ppc160728
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 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 October 28, 2016.
About Pilgrim’s Pride
Pilgrim’s employs approximately 37,700 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. For more information, please visit www.pilgrims.com.
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
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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.
Contact: | Dunham Winoto |
Director, Investor Relations | |
IRPPC@pilgrims.com | |
(970) 506-8192 | |
www.pilgrims.com | |
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PILGRIM’S PRIDE CORPORATION | ||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
June 26, 2016 | December 27, 2015 | |||||||
(Unaudited) | ||||||||
(In thousands) | ||||||||
Cash and cash equivalents | $ | 41,047 | $ | 439,638 | ||||
Trade accounts and other receivables, less allowance for doubtful accounts | 343,255 | 348,994 | ||||||
Account receivable from related parties | 1,797 | 2,668 | ||||||
Inventories | 832,565 | 801,357 | ||||||
Income taxes receivable | 88,358 | 71,410 | ||||||
Prepaid expenses and other current assets | 95,420 | 75,602 | ||||||
Assets held for sale | 6,549 | 6,555 | ||||||
Total current assets | 1,408,991 | 1,746,224 | ||||||
Other long-lived assets | 15,954 | 15,672 | ||||||
Identified intangible assets, net | 42,503 | 47,453 | ||||||
Goodwill | 125,607 | 156,565 | ||||||
Property, plant and equipment, net | 1,414,895 | 1,352,529 | ||||||
Total assets | $ | 3,007,950 | $ | 3,318,443 | ||||
Notes payable to banks | $ | — | $ | 28,726 | ||||
Accounts payable | 466,783 | 482,954 | ||||||
Account payable to related parties | 4,053 | 7,000 | ||||||
Accrued expenses and other current liabilities | 314,925 | 314,966 | ||||||
Income taxes payable | 38,771 | 13,228 | ||||||
Current maturities of long-term debt | 90 | 86 | ||||||
Total current liabilities | 824,622 | 846,960 | ||||||
Long-term debt, less current maturities | 1,117,979 | 985,509 | ||||||
Deferred tax liabilities | 144,876 | 131,882 | ||||||
Other long-term liabilities | 101,780 | 92,282 | ||||||
Total liabilities | 2,189,257 | 2,056,633 | ||||||
Common stock | 2,597 | 2,597 | ||||||
Treasury stock | (106,561 | ) | (99,233 | ) | ||||
Additional paid-in capital | 1,677,543 | 1,675,674 | ||||||
Accumulated deficit | (689,910 | ) | (261,252 | ) | ||||
Accumulated other comprehensive loss | (67,726 | ) | (58,930 | ) | ||||
Total Pilgrim’s Pride Corporation stockholders’ equity | 815,943 | 1,258,856 | ||||||
Noncontrolling interest | 2,750 | 2,954 | ||||||
Total stockholders’ equity | 818,693 | 1,261,810 | ||||||
Total liabilities and stockholders’ equity | $ | 3,007,950 | $ | 3,318,443 | ||||
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PILGRIM’S PRIDE CORPORATION | ||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Thirteen Weeks Ended | Twenty-Six Weeks Ended | |||||||||||||||
June 26, 2016 | June 28, 2015 | June 26, 2016 | June 28, 2015 | |||||||||||||
(In thousands, except per share data) | ||||||||||||||||
Net sales | $ | 2,028,315 | $ | 2,053,876 | $ | 3,991,252 | $ | 4,106,795 | ||||||||
Cost of sales | 1,742,184 | 1,621,856 | 3,467,559 | 3,297,655 | ||||||||||||
Gross profit | 286,131 | 432,020 | 523,693 | 809,140 | ||||||||||||
Selling, general and administrative expense | 49,520 | 48,834 | 98,308 | 98,341 | ||||||||||||
Administrative restructuring charges | — | 4,813 | — | 4,813 | ||||||||||||
Operating income | 236,611 | 378,373 | 425,385 | 705,986 | ||||||||||||
Interest expense, net of capitalized interest | 11,548 | 11,514 | 23,581 | 16,369 | ||||||||||||
Interest income | (683 | ) | (1,277 | ) | (1,376 | ) | (2,767 | ) | ||||||||
Foreign currency transaction loss (gain) | (4,744 | ) | 2,059 | (4,979 | ) | 11,033 | ||||||||||
Miscellaneous, net | (950 | ) | (4,651 | ) | (3,896 | ) | (5,064 | ) | ||||||||
Income before income taxes | 231,440 | 370,728 | 412,055 | 686,415 | ||||||||||||
Income tax expense | 78,398 | 129,104 | 141,002 | 240,598 | ||||||||||||
Net income | 153,042 | 241,624 | 271,053 | 445,817 | ||||||||||||
Less: Net income (loss) attributable to noncontrolling interests | 156 | 135 | (204 | ) | 113 | |||||||||||
Net income attributable to Pilgrim’s Pride Corporation | $ | 152,886 | $ | 241,489 | $ | 271,257 | $ | 445,704 | ||||||||
Weighted average shares of common stock outstanding: | ||||||||||||||||
Basic | 254,554 | 259,685 | 254,681 | 259,669 | ||||||||||||
Effect of dilutive common stock equivalents | 390 | 212 | 364 | 226 | ||||||||||||
Diluted | 254,944 | 259,897 | 255,045 | 259,895 | ||||||||||||
Net income attributable to Pilgrim's Pride Corporation per share of common stock outstanding: | ||||||||||||||||
Basic | $ | 0.60 | $ | 0.93 | $ | 1.07 | $ | 1.72 | ||||||||
Diluted | $ | 0.60 | $ | 0.93 | $ | 1.06 | $ | 1.71 | ||||||||
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PILGRIM’S PRIDE CORPORATION AND SUBSIDIARIES | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(Unaudited) | ||||||||
Twenty-Six Weeks Ended | ||||||||
June 26, 2016 | June 28, 2015 | |||||||
(In thousands) | ||||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 271,053 | $ | 445,817 | ||||
Adjustments to reconcile net income to cash provided by operating activities: | ||||||||
Depreciation and amortization | 88,683 | 75,070 | ||||||
Impairment expense | — | 4,813 | ||||||
Loss (gain) on property disposals | (6,755 | ) | (1,331 | ) | ||||
Share-based compensation | 1,869 | 1,268 | ||||||
Deferred income tax benefit | (700 | ) | (4,781 | ) | ||||
Changes in operating assets and liabilities: | ||||||||
Trade accounts and other receivables | 6,610 | 35,014 | ||||||
Inventories | (31,208 | ) | 3,192 | |||||
Prepaid expenses and other current assets | (19,817 | ) | 7,236 | |||||
Accounts payable, accrued expenses and other current liabilities | (23,028 | ) | 53,960 | |||||
Income taxes | 6,967 | (35,554 | ) | |||||
Long-term pension and other postretirement obligations | (3,952 | ) | 966 | |||||
Other operating assets and liabilities | (738 | ) | 2,433 | |||||
Cash provided by operating activities | 288,984 | 588,103 | ||||||
Cash flows from investing activities: | ||||||||
Acquisitions of property, plant and equipment | (93,978 | ) | (87,694 | ) | ||||
Proceeds from property disposals | 8,097 | 2,115 | ||||||
Cash provided by (used in) investing activities | (85,881 | ) | (85,579 | ) | ||||
Cash flows from financing activities: | ||||||||
Proceeds from note payable to bank | 36,838 | — | ||||||
Payments on note payable to bank | (65,564 | ) | — | |||||
Proceeds from revolving line of credit | 351,089 | 1,680,000 | ||||||
Payments on revolving line of credit, long-term borrowings and capital lease obligations | (219,812 | ) | (683,705 | ) | ||||
Proceeds from equity contribution under Tax Sharing Agreement between JBS USA Food Company Holdings and Pilgrim's Pride Corporation | 3,691 | — | ||||||
Tax benefit related to share-based compensation | — | 7,834 | ||||||
Payment of capitalized loan costs | (693 | ) | (10,132 | ) | ||||
Purchase of treasury stock | (7,328 | ) | — | |||||
Cash dividends | (699,915 | ) | (1,498,470 | ) | ||||
Cash used in financing activities | (601,694 | ) | (504,473 | ) | ||||
Increase (decrease) in cash and cash equivalents | (398,591 | ) | (1,949 | ) | ||||
Cash and cash equivalents, beginning of period | 439,638 | 576,143 | ||||||
Cash and cash equivalents, end of period | $ | 41,047 | $ | 574,194 | ||||
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PILGRIM’S PRIDE CORPORATION
Selected Financial Information
(Unaudited)
“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: (i) income (loss) attributable to non-controlling interests, (ii) restructuring charges, (iii) reorganization items, (iv) losses on early extinguishment of debt and (v) 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 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. 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.
PILGRIM'S PRIDE CORPORATION | |||||||||||||||
Reconciliation of Adjusted EBITDA | |||||||||||||||
(Unaudited) | Thirteen Weeks Ended | Twenty-Six Weeks Ended | |||||||||||||
June 26, 2016 | June 28, 2015 | June 26, 2016 | June 28, 2015 | ||||||||||||
(In thousands) | |||||||||||||||
Net income | $ | 153,042 | $ | 241,624 | $ | 271,053 | $ | 445,817 | |||||||
Add: | |||||||||||||||
Interest expense, net | 10,865 | 10,237 | 22,205 | 13,602 | |||||||||||
Income tax expense (benefit) | 78,398 | 129,104 | 141,002 | 240,598 | |||||||||||
Depreciation and amortization | 46,293 | 38,918 | 88,683 | 75,070 | |||||||||||
Minus: | |||||||||||||||
Amortization of capitalized financing costs | 962 | 864 | 1,889 | 1,589 | |||||||||||
EBITDA | 287,636 | 419,019 | 521,054 | 773,498 | |||||||||||
Add: | |||||||||||||||
Foreign currency transaction losses (gains) | (4,744 | ) | 2,059 | (4,979 | ) | 11,033 | |||||||||
Restructuring charges | — | 4,813 | — | 4,813 | |||||||||||
Minus: | |||||||||||||||
Net income (loss) attributable to noncontrolling interest | 156 | 135 | (204 | ) | 113 | ||||||||||
Adjusted EBITDA | $ | 282,736 | $ | 425,756 | $ | 516,279 | $ | 789,231 | |||||||
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The summary unaudited consolidated income statement data for the twelve months ended June 26, 2016 (the LTM Period) have been calculated by subtracting the applicable unaudited consolidated income statement data for the six months ended June 28, 2015 from the sum of (1) the applicable audited consolidated income statement data for the year ended December 27, 2015 and (2) the applicable audited consolidated income statement data for the six months ended June 26, 2016.
PILGRIM'S PRIDE CORPORATION | ||||||||||||||||||||
Reconciliation of LTM Adjusted EBITDA | ||||||||||||||||||||
(Unaudited) | Thirteen Weeks Ended | Thirteen Weeks Ended | Thirteen Weeks Ended | Thirteen Weeks Ended | LTM Ended | |||||||||||||||
September 27, 2015 | December 27, 2015 | March 27, 2016 | June 26, 2016 | June 26, 2016 | ||||||||||||||||
(In thousands) | ||||||||||||||||||||
Net income | $ | 137,095 | $ | 63,050 | $ | 118,011 | $ | 153,042 | $ | 471,198 | ||||||||||
Add: | ||||||||||||||||||||
Interest expense, net | 10,182 | 10,091 | 11,340 | 10,865 | 42,478 | |||||||||||||||
Income tax expense (benefit) | 73,153 | 33,045 | 62,604 | 78,398 | 247,200 | |||||||||||||||
Depreciation and amortization | 41,415 | 42,490 | 42,391 | 46,293 | 172,589 | |||||||||||||||
Minus: | ||||||||||||||||||||
Amortization of capitalized financing costs | 1,119 | 930 | 928 | 962 | 3,939 | |||||||||||||||
EBITDA | 260,726 | 147,746 | 233,418 | 287,636 | 929,526 | |||||||||||||||
Add: | ||||||||||||||||||||
Foreign currency transaction losses (gains) | 12,773 | 2,134 | (235 | ) | (4,744 | ) | 9,928 | |||||||||||||
Restructuring charges | 792 | — | — | — | 792 | |||||||||||||||
Minus: | ||||||||||||||||||||
Net income (loss) attributable to noncontrolling interest | 33 | (98 | ) | (360 | ) | 156 | (269 | ) | ||||||||||||
Adjusted EBITDA | $ | 274,258 | $ | 149,978 | $ | 233,543 | $ | 282,736 | $ | 940,515 | ||||||||||
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EBITDA margins have been calculated by taking the relevant unaudited EBITDA figures, then dividing by Net Revenue for the applicable period.
PILGRIM'S PRIDE CORPORATION | ||||||||||||||||||||||||||||||||
Reconciliation of EBITDA Margin | ||||||||||||||||||||||||||||||||
(Unaudited) | Thirteen Weeks Ended | Twenty-Six Weeks Ended | Thirteen Weeks Ended | Twenty-Six Weeks Ended | ||||||||||||||||||||||||||||
June 26, 2016 | June 28, 2015 | June 26, 2016 | June 28, 2015 | June 26, 2016 | June 28, 2015 | June 26, 2016 | June 28, 2015 | |||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
Net income from continuing operations | $ | 153,042 | $ | 241,624 | $ | 271,053 | $ | 445,817 | 7.55 | % | 11.76 | % | 6.79 | % | 10.86 | % | ||||||||||||||||
Add: | ||||||||||||||||||||||||||||||||
Interest expense, net | 10,865 | 10,237 | 22,205 | 13,602 | 0.54 | % | 0.50 | % | 0.56 | % | 0.33 | % | ||||||||||||||||||||
Income tax expense (benefit) | 78,398 | 129,104 | 141,002 | 240,598 | 3.87 | % | 6.29 | % | 3.53 | % | 5.86 | % | ||||||||||||||||||||
Depreciation and amortization | 46,293 | 38,918 | 88,683 | 75,070 | 2.28 | % | 1.89 | % | 2.22 | % | 1.83 | % | ||||||||||||||||||||
Minus: | ||||||||||||||||||||||||||||||||
Amortization of capitalized financing costs | 962 | 864 | 1,889 | 1,589 | 0.05 | % | 0.04 | % | 0.05 | % | 0.04 | % | ||||||||||||||||||||
EBITDA | 287,636 | 419,019 | 521,054 | 773,498 | 14.18 | % | 20.40 | % | 13.05 | % | 18.83 | % | ||||||||||||||||||||
Add: | ||||||||||||||||||||||||||||||||
Foreign currency transaction losses (gains) | (4,744 | ) | 2,059 | (4,979 | ) | 11,033 | (0.23 | )% | 0.10 | % | (0.12 | )% | 0.27 | % | ||||||||||||||||||
Restructuring charges | — | 4,813 | — | 4,813 | — | % | 0.23 | % | — | % | 0.12 | % | ||||||||||||||||||||
Minus: | ||||||||||||||||||||||||||||||||
Net income (loss) attributable to noncontrolling interest | 156 | 135 | (204 | ) | 113 | 0.01 | % | 0.01 | % | (0.01 | )% | — | % | |||||||||||||||||||
Adjusted EBITDA | $ | 282,736 | $ | 425,756 | $ | 516,279 | $ | 789,231 | 13.94 | % | 20.73 | % | 12.94 | % | 19.22 | % | ||||||||||||||||
Net Revenue: | $ | 2,028,315 | $ | 2,053,876 | $ | 3,991,252 | $ | 4,106,795 | $ | 2,028,315 | $ | 2,053,876 | $ | 3,991,252 | $ | 4,106,795 | ||||||||||||||||
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A reconciliation of net income (loss) attributable to Pilgrim's Pride Corporation per common diluted share to adjusted net income (loss) attributable to Pilgrim's Pride Corporation per common diluted share is as follows:
PILGRIM'S PRIDE CORPORATION | ||||||||||||||||
Reconciliation of Adjusted Earnings | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Thirteen Weeks Ended | Twenty-Six Weeks Ended | |||||||||||||||
June 26, 2016 | June 28, 2015 | June 26, 2016 | June 28, 2015 | |||||||||||||
(In thousands, except per share data) | ||||||||||||||||
Net income (loss) attributable to Pilgrim's Pride Corporation | $ | 152,886 | $ | 241,489 | $ | 271,257 | $ | 445,704 | ||||||||
Loss on early extinguishment of debt | — | 68 | — | 68 | ||||||||||||
Foreign currency transaction losses (gains) | (4,744 | ) | 2,059 | (4,979 | ) | 11,033 | ||||||||||
Income (loss) before loss on early extinguishment of debt and foreign currency transaction losses (gains) | 148,142 | 243,616 | 266,278 | 456,805 | ||||||||||||
Weighted average diluted shares of common stock outstanding | 254,944 | 259,897 | 255,045 | 259,895 | ||||||||||||
Income (loss) before loss on early extinguishment of debt and foreign currency transaction losses (gains) per common diluted share | $ | 0.58 | $ | 0.94 | $ | 1.04 | $ | 1.76 | ||||||||
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A reconciliation of GAAP earnings per share (EPS) to adjusted earnings per share (EPS) is as follows:
PILGRIM'S PRIDE CORPORATION | |||||||||||||||
Reconciliation of GAAP EPS to Adjusted EPS | |||||||||||||||
(Unaudited) | |||||||||||||||
Thirteen Weeks Ended | Twenty-Six Weeks Ended | ||||||||||||||
June 26, 2016 | June 28, 2015 | June 26, 2016 | June 28, 2015 | ||||||||||||
(In thousands, except per share data) | |||||||||||||||
GAAP EPS | $ | 0.60 | $ | 0.93 | $ | 1.06 | $ | 1.71 | |||||||
Loss on early extinguishment of debt | — | — | — | — | |||||||||||
Foreign currency transaction losses (gains) | (0.02 | ) | 0.01 | (0.02 | ) | 0.04 | |||||||||
Adjusted EPS | $ | 0.58 | $ | 0.94 | $ | 1.04 | $ | 1.76 | |||||||
Weighted average diluted shares of common stock outstanding | 254,944 | 259,897 | 255,045 | 259,895 | |||||||||||
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Net debt is defined as total long term debt less current maturities, plus current maturities of long term debt and notes payable, minus cash, cash equivalents and investments in available-for-sale securities. Net debt is presented because it is used by management, and we believe it is frequently used by securities analysts, investors and other parties, in addition to and not in lieu of debt as presented under GAAP, to compare the indebtedness of companies. A reconciliation of net debt is as follows:
PILGRIM'S PRIDE CORPORATION | |||||||||||||||||||
Reconciliation of Net Debt | |||||||||||||||||||
(Unaudited) | |||||||||||||||||||
December 29, 2013 | December 28, 2014 | December 27, 2015 | June 28, 2015 | June 26, 2016 | |||||||||||||||
(In thousands) | |||||||||||||||||||
Long term debt, less current maturities | $ | 501,999 | $ | 3,980 | $ | 985,509 | $ | 1,000,420 | $ | 1,117,979 | |||||||||
Add: Current maturities of long term debt and notes payable | 410,234 | 262 | 28,812 | 117 | 90 | ||||||||||||||
Minus: Cash and cash equivalents | 508,206 | 576,143 | 439,638 | 574,194 | 41,047 | ||||||||||||||
Minus: Available-for-sale securities | 96,902 | — | — | — | — | ||||||||||||||
Net debt (cash position) | $ | 307,125 | $ | (571,901 | ) | $ | 574,683 | $ | 426,343 | $ | 1,077,022 | ||||||||
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PILGRIM'S PRIDE CORPORATION | ||||||||||||||||
Supplementary Selected Segment and Geographic Data | ||||||||||||||||
Thirteen Weeks Ended | Twenty-Six Weeks Ended | |||||||||||||||
June 26, 2016 | June 28, 2015 | June 26, 2016 | June 28, 2015 | |||||||||||||
(Unaudited) | ||||||||||||||||
(In thousands) | ||||||||||||||||
Sources of net sales by country of origin: | ||||||||||||||||
US: | $ | 1,677,445 | $ | 1,838,859 | $ | 3,347,726 | $ | 3,681,617 | ||||||||
Mexico: | 350,870 | 215,017 | 643,526 | 425,178 | ||||||||||||
Total net sales: | $ | 2,028,315 | $ | 2,053,876 | $ | 3,991,252 | $ | 4,106,795 | ||||||||
Sources of cost of sales by country of origin: | ||||||||||||||||
US: | $ | 1,471,269 | $ | 1,454,669 | $ | 2,925,224 | $ | 2,958,876 | ||||||||
Mexico: | 270,939 | 167,211 | 542,383 | 338,827 | ||||||||||||
Elimination: | (24 | ) | (24 | ) | (48 | ) | (48 | ) | ||||||||
Total cost of sales: | $ | 1,742,184 | $ | 1,621,856 | $ | 3,467,559 | $ | 3,297,655 | ||||||||
Sources of gross profit by country of origin: | ||||||||||||||||
US: | $ | 206,176 | $ | 384,190 | $ | 422,502 | $ | 722,742 | ||||||||
Mexico: | 79,931 | 47,806 | 101,143 | 86,350 | ||||||||||||
Elimination: | 24 | 24 | 48 | 48 | ||||||||||||
Total gross profit: | $ | 286,131 | $ | 432,020 | $ | 523,693 | $ | 809,140 | ||||||||
Sources of operating income by country of origin: | ||||||||||||||||
US: | $ | 164,494 | $ | 335,783 | $ | 339,084 | $ | 629,437 | ||||||||
Mexico: | 72,093 | 42,566 | 86,253 | 76,501 | ||||||||||||
Elimination: | 24 | 24 | 48 | 48 | ||||||||||||
Total operating income: | $ | 236,611 | $ | 378,373 | $ | 425,385 | $ | 705,986 | ||||||||
13