Virginia | 1-15321 | 52-0845861 | ||||
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
200 Commerce Street Smithfield, Virginia | 23430 | |||
(Address of principal executive offices) | (Zip Code) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02 | Results of Operations and Financial Condition. |
Item 9.01 | Financial Statements and Exhibits. |
(d) Exhibits |
99.1 | Press release, dated March 8, 2012, announcing the Registrant's results for the third quarter of fiscal 2012, which ended January 29, 2012. |
SMITHFIELD FOODS, INC. | ||
Date: March 8, 2012 | /s/ Michael H. Cole | |
Michael H. Cole | ||
Vice President, Chief Legal Officer and Secretary |
Exhibit 99.1 | Press release, dated March 8, 2012, announcing the Registrant's results for the third quarter of fiscal 2012, which ended January 29, 2012. |
• | Net income was $79.0 million, or $.49 per diluted share |
• | Adjusted EPS was $.69 per diluted share |
◦ | Posted second best third quarter in company history |
• | Sales increased 9% to $3.5 billion |
• | Packaged meats sales +6% with solid margins |
◦ | Core brands sales +6% on flat volume |
◦ | Foodservice sales +8% and volume +1% |
• | Produced strong fresh pork earnings |
◦ | Export sales +68% and volume +41% |
• | Achieved record third quarter results in international segment after adjusting for charges |
• | Reduced interest expense 30% |
• | Retired an additional $23 million of 10% coupon debt |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||
January 29, 2012 | January 30, 2011 | January 29, 2012 | January 30, 2011 | |||||||||||||||||||||||||
Sales: | ||||||||||||||||||||||||||||
Pork | ||||||||||||||||||||||||||||
Fresh Pork | $ | 1,303.2 | $ | 1,093.1 | $ | 3,849.8 | $ | 3,336.3 | ||||||||||||||||||||
Packaged Meats | 1,689.5 | 1,591.6 | 4,515.0 | 4,240.0 | ||||||||||||||||||||||||
Total Pork | 2,992.7 | 2,684.7 | 8,364.8 | 7,576.3 | ||||||||||||||||||||||||
Hog Production | 761.8 | 649.9 | 2,296.9 | 2,004.8 | ||||||||||||||||||||||||
International | 360.4 | 355.9 | 1,126.5 | 1,001.6 | ||||||||||||||||||||||||
Other | — | 12.9 | — | 74.7 | ||||||||||||||||||||||||
Total segment sales | 4,114.9 | 3,703.4 | 11,788.2 | 10,657.4 | ||||||||||||||||||||||||
Intersegment | (636.6 | ) | (517.2 | ) | (1,903.1 | ) | (1,571.1 | ) | ||||||||||||||||||||
$ | 3,478.3 | $ | 3,186.2 | $ | 9,885.1 | $ | 9,086.3 | |||||||||||||||||||||
Operating profit and margin %: | ||||||||||||||||||||||||||||
Pork | ||||||||||||||||||||||||||||
Fresh Pork | $ | 78.5 | 6 | % | $ | 130.3 | 12 | % | $ | 210.1 | 5 | % | $ | 289.7 | 9 | % | ||||||||||||
Packaged Meats | 117.4 | 7 | % | 124.5 | 8 | % | 293.7 | 7 | % | 267.3 | 6 | % | ||||||||||||||||
Total Pork | 195.9 | 7 | % | 254.8 | 9 | % | 503.8 | 6 | % | 557.0 | 7 | % | ||||||||||||||||
Hog Production | (6.6 | ) | (1 | )% | (2.3 | ) | 0 | % | 127.0 | 6 | % | 139.8 | 7 | % | ||||||||||||||
International | 6.2 | 2 | % | 34.5 | 10 | % | 23.5 | 2 | % | 103.1 | 10 | % | ||||||||||||||||
Other | — | N/A | (0.5 | ) | (4 | )% | — | N/A | (2.3 | ) | (3 | )% | ||||||||||||||||
Corporate | (25.0 | ) | 86.2 | (85.9 | ) | 30.8 | ||||||||||||||||||||||
Consolidated | $ | 170.5 | 5 | % | $ | 372.7 | 12 | % | $ | 568.4 | 6 | % | $ | 828.4 | 9 | % |
Three Months | Nine Months | ||||||||||||||||||||||||||||||
Operating Profit | EPS | Operating Profit | EPS | ||||||||||||||||||||||||||||
(in millions, except EPS) | FY12 | FY11 | FY12 | FY11 | FY12 | FY11 | FY12 | FY11 | |||||||||||||||||||||||
Reported GAAP measure | $ | 170.5 | $ | 372.7 | $ | .49 | $ | 1.21 | $ | 568.4 | $ | 828.4 | $ | 1.72 | $ | 2.53 | |||||||||||||||
Add back of significant items: | |||||||||||||||||||||||||||||||
Litigation charge | — | — | — | — | 39.0 | — | .14 | — | |||||||||||||||||||||||
Net insurance gains | — | (120.6 | ) | — | (.44 | ) | — | (139.7 | ) | — | (.51 | ) | |||||||||||||||||||
HP cost savings/other disposal costs | — | 5.8 | — | .02 | 13.1 | 21.6 | .05 | .08 | |||||||||||||||||||||||
Early extinguishment of debt | — | — | .02 | .05 | — | — | .05 | .08 | |||||||||||||||||||||||
Campofrío charges | 38.7 | — | .18 | — | 45.1 | — | .20 | — | |||||||||||||||||||||||
Adjusted non-GAAP measure | $ | 209.2 | $ | 257.9 | $ | .69 | $ | .84 | $ | 665.6 | $ | 710.3 | $ | 2.16 | $ | 2.18 |
SMITHFIELD FOODS, INC. AND SUBSIDIARIES | ||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||
(In millions, except per share data) | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
January 29, 2012 | January 30, 2011 | January 29, 2012 | January 30, 2011 | |||||||||||||
(unaudited) | (unaudited) | |||||||||||||||
Sales | $ | 3,478.3 | $ | 3,186.2 | $ | 9,885.1 | $ | 9,086.3 | ||||||||
Cost of sales | 3,098.5 | 2,729.0 | 8,678.6 | 7,828.7 | ||||||||||||
Gross profit | 379.8 | 457.2 | 1,206.5 | 1,257.6 | ||||||||||||
Selling, general and administrative expenses | 187.3 | 220.3 | 626.8 | 594.1 | ||||||||||||
Gain on insurance recovery | — | (120.6 | ) | — | (120.6 | ) | ||||||||||
Equity in loss (income) of affiliates | 22.0 | (15.2 | ) | 11.3 | (44.3 | ) | ||||||||||
Operating profit | 170.5 | 372.7 | 568.4 | 828.4 | ||||||||||||
Interest expense | 42.3 | 60.3 | 134.6 | 194.4 | ||||||||||||
Loss on debt extinguishment | 4.6 | 14.1 | 12.2 | 21.4 | ||||||||||||
Income before income taxes | 123.6 | 298.3 | 421.6 | 612.6 | ||||||||||||
Income tax expense | 44.6 | 95.7 | 139.8 | 190.0 | ||||||||||||
Net income | $ | 79.0 | $ | 202.6 | $ | 281.8 | $ | 422.6 | ||||||||
Net income per share: | ||||||||||||||||
Basic | $ | .49 | $ | 1.22 | $ | 1.73 | $ | 2.55 | ||||||||
Diluted | $ | .49 | $ | 1.21 | $ | 1.72 | $ | 2.53 | ||||||||
Weighted average shares outstanding: | ||||||||||||||||
Basic | 161.0 | 166.0 | 163.1 | 166.0 | ||||||||||||
Effect of dilutive stock options | 1.8 | 1.2 | 1.1 | 1.2 | ||||||||||||
Diluted | 162.8 | 167.2 | 164.2 | 167.2 |
SMITHFIELD FOODS, INC. AND SUBSIDIARIES | ||||||||||||||||||
SCHEDULE OF EQUITY IN LOSS (INCOME) OF AFFILIATES | ||||||||||||||||||
(In millions) | ||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||
Equity Investment | Segment | January 29, 2012 | January 30, 2011 | January 29, 2012 | January 30, 2011 | |||||||||||||
(unaudited) | (unaudited) | |||||||||||||||||
Mexican joint ventures | International | $ | (6.4 | ) | $ | (7.8 | ) | $ | (11.3 | ) | $ | (23.6 | ) | |||||
Campofrío Food Group (CFG) (1) | International | 28.2 | (7.1 | ) | 24.0 | (18.0 | ) | |||||||||||
All other equity method investments | Various | 0.2 | (0.3 | ) | (1.4 | ) | (2.7 | ) | ||||||||||
Equity in loss (income) of affiliates | $ | 22.0 | $ | (15.2 | ) | $ | 11.3 | $ | (44.3 | ) | ||||||||
(1) | Third quarter of fiscal 2012 includes our share of CFG's charges totaling $38.7 million related to a plan to consolidate and streamline its manufacturing operations. CFG prepares its financial statements in accordance with International Financial Reporting Standards. Our share of CFG's results reflects U.S. GAAP adjustments. There may be differences between what we report for CFG and what CFG reports. |
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