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 September 4, 2012, announcing the Registrant's results for the first quarter of fiscal 2013, which ended July 29, 2012. |
SMITHFIELD FOODS, INC. | ||
Date: September 4, 2012 | /s/ Michael H. Cole | |
Michael H. Cole | ||
Vice President, Chief Legal Officer and Secretary |
Exhibit 99.1 | Press release, dated September 4, 2012, announcing the Registrant's results for the first quarter of fiscal 2013, which ended July 29, 2012. |
• | Net income was $61.7 million, or $.40 per diluted share |
• | Packaged meats operating profit +29% to first quarter record $130.6 million |
◦ | Packaged meats volume +4% |
▪ | Core brands volume +7% |
• | Continued aggressive share repurchases |
◦ | Repurchased 7.4 million shares for $145 million in first quarter |
◦ | Repurchased 17.4 million shares, or more than 10% of the company, for $350 million in just over a year |
• | Reduced interest expense 12% |
• | Refinanced balance sheet; redeemed $694 million of debt subsequent to quarter end |
◦ | Dramatically improved debt maturity profile |
◦ | Eliminated all secured term debt |
◦ | Increased liquidity |
◦ | Lowered borrowing costs |
Three Months Ended | ||||||||||||||
July 31, 2011 | August 1, 2010 | |||||||||||||
Sales: | ||||||||||||||
Pork | ||||||||||||||
Fresh Pork | $ | 1,261.0 | $ | 1,254.2 | ||||||||||
Packaged Meats | 1,338.6 | 1,343.1 | ||||||||||||
Total Pork | 2,599.6 | 2,597.3 | ||||||||||||
Hog Production | 728.8 | 749.8 | ||||||||||||
International | 346.8 | 375.0 | ||||||||||||
Total segment sales | 3,675.2 | 3,722.1 | ||||||||||||
Intersegment | (583.9 | ) | (627.9 | ) | ||||||||||
Consolidated | $ | 3,091.3 | $ | 3,094.2 | ||||||||||
Operating profit and margin %: | ||||||||||||||
Pork | ||||||||||||||
Fresh Pork | $ | (12.0 | ) | (1 | )% | $ | 35.4 | 3 | % | |||||
Packaged Meats | 130.6 | 10 | % | 101.3 | 8 | % | ||||||||
Total Pork | 118.6 | 5 | % | 136.7 | 5 | % | ||||||||
Hog Production | 23.1 | 3 | % | 69.7 | 9 | % | ||||||||
International | 15.8 | 5 | % | — | 0 | % | ||||||||
Corporate | (25.7 | ) | (33.2 | ) | ||||||||||
Consolidated | $ | 131.8 | 4 | % | $ | 173.2 | 6 | % |
• | Launched a $1 billion 6.625% senior unsecured notes offering due 2022, which yielded net proceeds of $981 million. |
• | Tendered for all its outstanding 2013 bonds (7.75% coupon) and consequently repurchased $105 million of the $160 million outstanding balance of the 2013 bonds. |
• | Tendered for all its outstanding 2014 senior secured bonds (10% coupon) and subsequently repurchased the entire $589 million outstanding balance of the 2014 bonds. |
• | Secured a two year extension for its $200 million bank term loan from fiscal 2017 to fiscal 2019. |
SMITHFIELD FOODS, INC. AND SUBSIDIARIES | ||||||||
CONSOLIDATED STATEMENTS OF INCOME | ||||||||
(In millions, except per share data) | ||||||||
Three Months Ended | ||||||||
July 31, 2011 | August 1, 2010 | |||||||
(unaudited) | ||||||||
Sales | $ | 3,091.3 | $ | 3,094.2 | ||||
Cost of sales | 2,759.1 | 2,687.1 | ||||||
Gross profit | 332.2 | 407.1 | ||||||
Selling, general and administrative expenses | 201.1 | 238.7 | ||||||
Income from equity method investments | (0.7 | ) | (4.8 | ) | ||||
Operating profit | 131.8 | 173.2 | ||||||
Interest expense | 42.5 | 48.1 | ||||||
Loss on debt extinguishment | — | 1.2 | ||||||
Income before income taxes | 89.3 | 123.9 | ||||||
Income tax expense | 27.6 | 41.8 | ||||||
Net income | $ | 61.7 | $ | 82.1 | ||||
Net income per share: | ||||||||
Basic | $ | .40 | $ | .50 | ||||
Diluted | $ | .40 | $ | .49 | ||||
Weighted average shares outstanding: | ||||||||
Basic | 154.3 | 165.8 | ||||||
Effect of dilutive shares | 1.0 | 1.2 | ||||||
Diluted | 155.3 | 167.0 |
SMITHFIELD FOODS, INC. AND SUBSIDIARIES | ||||||||||
SCHEDULE OF (INCOME) LOSS FROM EQUITY METHOD INVESTMENTS | ||||||||||
(In millions) | ||||||||||
Three Months Ended | ||||||||||
Equity Investment | Segment | July 29, 2012 | July 31, 2011 | |||||||
(unaudited) | ||||||||||
Mexican joint ventures | International | $ | 0.4 | $ | (3.0 | ) | ||||
Campofrío Food Group (CFG) (1) | International | (0.1 | ) | (0.2 | ) | |||||
All other equity method investments | Various | (1.0 | ) | (1.6 | ) | |||||
Income from equity method investments | $ | (0.7 | ) | $ | (4.8 | ) | ||||
(1) | 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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