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 June 14, 2012, announcing the Registrant's results for fiscal year 2012 and the fourth quarter of fiscal 2012, which ended April 29, 2012. |
SMITHFIELD FOODS, INC. | ||
Date: June 14, 2012 | /s/ Michael H. Cole | |
Michael H. Cole | ||
Vice President, Chief Legal Officer and Secretary |
Exhibit 99.1 | Press release, dated June 14, 2012, announcing the Registrant's results for fiscal year 2012 and the fourth quarter of fiscal 2012, which ended April 29, 2012. |
• | Net income was $79.5 million, or $.49 per diluted share |
• | Adjusted EPS was $.43 per diluted share |
• | Sales increased 3% to $3.2 billion |
• | Packaged meats operating profit +36% |
• | Export shipments +13% |
• | Reduced interest expense 17% |
• | Repurchased $79 million of stock during quarter; purchased additional $52 million subsequent to quarter end |
• | Net income was second best in company history |
• | Net income was $361.3 million, or $2.21 per diluted share |
• | Adjusted EPS was $2.59 per diluted share |
• | Record sales of $13.1 billion, up 7% |
• | Packaged meats sales +5% and operating profit +16% |
◦ | Core brands volume +2% |
• | Export sales +35% and volume +24% |
• | Reduced interest expense by nearly $70 million, or 28% |
• | Repaid $138 million of bonds |
• | Repurchased $189 million of stock |
• | Share repurchases to date total 11.8 million shares, or 7% of company |
Three Months Ended | Twelve Months Ended | ||||||||||||||||||||||||||
April 29, 2012 | May 1, 2011 | April 29, 2012 | May 1, 2011 | ||||||||||||||||||||||||
Sales: | |||||||||||||||||||||||||||
Pork | |||||||||||||||||||||||||||
Fresh Pork | $ | 1,239.6 | $ | 1,206.4 | $ | 5,089.4 | $ | 4,542.7 | |||||||||||||||||||
Packaged Meats | 1,488.6 | 1,481.2 | 6,003.6 | 5,721.2 | |||||||||||||||||||||||
Total Pork | 2,728.2 | 2,687.6 | 11,093.0 | 10,263.9 | |||||||||||||||||||||||
Hog Production | 755.7 | 700.3 | 3,052.6 | 2,705.1 | |||||||||||||||||||||||
International | 340.2 | 339.1 | 1,466.7 | 1,340.7 | |||||||||||||||||||||||
Other | — | — | — | 74.7 | |||||||||||||||||||||||
Total segment sales | 3,824.1 | 3,727.0 | 15,612.3 | 14,384.4 | |||||||||||||||||||||||
Intersegment | (614.9 | ) | (610.6 | ) | (2,518.0 | ) | (2,181.7 | ) | |||||||||||||||||||
Consolidated | $ | 3,209.2 | $ | 3,116.4 | $ | 13,094.3 | $ | 12,202.7 | |||||||||||||||||||
Operating profit and margin %: | |||||||||||||||||||||||||||
Pork | |||||||||||||||||||||||||||
Fresh Pork | $ | 11.9 | 1 | % | $ | 116.8 | 10 | % | $ | 222.0 | 4 | % | $ | 406.5 | 9 | % | |||||||||||
Packaged Meats | 108.0 | 7 | % | 79.6 | 5 | % | 401.7 | 7 | % | 346.9 | 6 | % | |||||||||||||||
Total Pork | 119.9 | 4 | % | 196.4 | 7 | % | 623.7 | 6 | % | 753.4 | 7 | % | |||||||||||||||
Hog Production | 39.1 | 5 | % | 84.5 | 12 | % | 166.1 | 5 | % | 224.4 | 8 | % | |||||||||||||||
International | 19.3 | 6 | % | 12.8 | 4 | % | 42.8 | 3 | % | 115.9 | 9 | % | |||||||||||||||
Other | — | N/A | — | N/A | — | N/A | (2.4 | ) | (3 | )% | |||||||||||||||||
Corporate | (24.1 | ) | (27.1 | ) | (110.0 | ) | 3.7 | ||||||||||||||||||||
Consolidated | $ | 154.2 | 5 | % | $ | 266.6 | 9 | % | $ | 722.6 | 6 | % | $ | 1,095.0 | 9 | % |
SMITHFIELD FOODS, INC. AND SUBSIDIARIES | ||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||
(In millions, except per share data) | ||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||
April 29, 2012 | May 1, 2011 | April 29, 2012 | May 1, 2011 | |||||||||||||
(unaudited) | (unaudited) | |||||||||||||||
Sales | $ | 3,209.2 | $ | 3,116.4 | $ | 13,094.3 | $ | 12,202.7 | ||||||||
Cost of sales | 2,866.3 | 2,659.9 | 11,544.9 | 10,488.6 | ||||||||||||
Gross profit | 342.9 | 456.5 | 1,549.4 | 1,714.1 | ||||||||||||
Selling, general and administrative expenses | 190.1 | 195.7 | 816.9 | 789.8 | ||||||||||||
Gain on insurance recovery | — | — | — | (120.6 | ) | |||||||||||
(Income) loss from equity method investments | (1.4 | ) | (5.8 | ) | 9.9 | (50.1 | ) | |||||||||
Operating profit | 154.2 | 266.6 | 722.6 | 1,095.0 | ||||||||||||
Interest expense | 42.1 | 51.0 | 176.7 | 245.4 | ||||||||||||
Loss on debt extinguishment | — | 71.1 | 12.2 | 92.5 | ||||||||||||
Income before income taxes | 112.1 | 144.5 | 533.7 | 757.1 | ||||||||||||
Income tax expense | 32.6 | 46.1 | 172.4 | 236.1 | ||||||||||||
Net income | $ | 79.5 | $ | 98.4 | $ | 361.3 | $ | 521.0 | ||||||||
Net income per share: | ||||||||||||||||
Basic | $ | .50 | $ | .59 | $ | 2.23 | $ | 3.14 | ||||||||
Diluted | $ | .49 | $ | .59 | $ | 2.21 | $ | 3.12 | ||||||||
Weighted average shares outstanding: | ||||||||||||||||
Basic | 160.1 | 166.1 | 162.3 | 166.0 | ||||||||||||
Effect of dilutive stock options | 1.1 | 1.4 | 1.2 | 1.2 | ||||||||||||
Diluted | 161.2 | 167.5 | 163.5 | 167.2 |
SMITHFIELD FOODS, INC. AND SUBSIDIARIES | ||||||||||||||||||
SCHEDULE OF (INCOME) LOSS FROM EQUITY METHOD INVESTMENTS | ||||||||||||||||||
(In millions) | ||||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||||
Equity Investment | Segment | April 29, 2012 | May 1, 2011 | April 29, 2012 | May 1, 2011 | |||||||||||||
(unaudited) | (unaudited) | |||||||||||||||||
Mexican joint ventures | International | $ | (2.1 | ) | $ | (6.0 | ) | $ | (13.4 | ) | $ | (29.6 | ) | |||||
Campofrío Food Group (CFG) (1) | International | 1.0 | 1.0 | 25.0 | (17.0 | ) | ||||||||||||
All other equity method investments | Various | (0.3 | ) | (0.8 | ) | (1.7 | ) | (3.5 | ) | |||||||||
(Income) loss from equity method investments | $ | (1.4 | ) | $ | (5.8 | ) | $ | 9.9 | $ | (50.1 | ) | |||||||
(1) | Equity loss for the twelve months ended April 29, 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. |
SMITHFIELD FOODS, INC. AND SUBSIDIARIES | ||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES | ||||||||||||||||
Twelve Months Ended | ||||||||||||||||
Operating Profit | EPS | |||||||||||||||
(in millions, except EPS) | April 29, 2012 | May 1, 2011 | April 29, 2012 | May 1, 2011 | ||||||||||||
Reported GAAP measure | $ | 722.6 | $ | 1,095.0 | $ | 2.21 | $ | 3.12 | ||||||||
Add back of significant items: | ||||||||||||||||
Missouri litigation | 22.2 | — | .08 | — | ||||||||||||
Net insurance gains | — | (139.7 | ) | — | (.51 | ) | ||||||||||
HP cost savings/other disposal costs | 13.1 | 21.6 | .05 | .08 | ||||||||||||
Early extinguishment of debt | — | — | .05 | .34 | ||||||||||||
Campofrío charges | 45.1 | — | .20 | — | ||||||||||||
Adjusted non-GAAP measure | $ | 803.0 | $ | 976.9 | $ | 2.59 | $ | 3.03 |
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