Pilgrim’s Pride Ends Fiscal Year 2018 with Net Sales of $10.94 Billion, Operating Income of $496 Million and GAAP EPS of $1.00

GREELEY, Colo., Feb. 13, 2019 (GLOBE NEWSWIRE) -- Pilgrim’s Pride Corporation (NASDAQ: PPC) reports fourth quarter and year-end 2018 financial results.

2018 Highlights

  • Adjusted Operating Income margins of 4.2% in U.S., 8.8% in Mexico and 4.3% in Europe operations, respectively.
  • Adjusted EBITDA of $798 million, or a 7.3% margin.
  • Portfolio strategy and geographic diversification reducing the impact of challenging market conditions, specifically in U.S. commodity chicken. We remain motivated to pursue additional growth potential and product differentiation in 2019, aligning our strategic priorities to continue providing stronger platforms for the future.
  • Prepared Foods grew 15% in the U.S. and 33% in Mexico, and is increasing its momentum, realizing the results of investments made over the past few years to further widen our product and brand portfolio, strengthen key customer relationships, and improve margin consistency.
  • Moy Park integration is better than expected; operations and profitability improving with synergies captured despite headwinds from feed costs caused by regional drought.

Fourth Quarter Results

  • Net Sales of $2.66 billion, -3.1% versus same quarter last year.
  • Adjusted Net Income of $21 million and adjusted EPS of $0.09.
  • Adjusted Operating Income margins of 0.3% in U.S., 5.3% in Mexico and 3.8% in Europe operations, respectively, adjusted for non-recurring items related to weather events, Moy Park acquisition and Exchange Rate.
  • Adjusted EBITDA of $111 million, or a 4.2% margin.
 
Unaudited (2), In Millions, Except Per Share and Percentages
 Thirteen
Weeks
Ended
 Fourteen
Weeks
Ended
   Fifty-Two
Weeks
Ended
 Fifty-Three
Weeks
Ended
  
 Dec 30, 2018 Dec 31, 2017 Y/Y
Change
 Dec 30, 2018 Dec 31, 2017 Y/Y
Change
Net Sales$2,656.8 $2,742.4 -3.1% $10,937.8 $10,767.9 +1.6%
GAAP EPS$(0.03) $0.54 -105.6% $1.00 $2.79 -64.2%
Operating Income$23.6 $155.0 -84.8% $495.7 $1,072.3 -53.8%
Adjusted EBITDA (1)$111.0 $241.0 -53.9% $798.2 $1,388.0 -42.5%
Adjusted EBITDA Margin (1)4.2% 8.8% -4.6pts 7.3% 12.9% -5.6pts
(1) Reconciliations for non-GAAP measures are provided in subsequent sections within this release.
(2) Figures have been adjusted to include full-quarter and year of Moy Park, in accordance to U.S. GAAP.
 

“In the U.S. we endured a very challenging environment in commodity chicken, slower than expected recovery from weather disruptions at some complexes, partially offset by an improvement in operating results from Prepared Foods. In Europe we improved the performance through expected synergies but were impacted by higher feed inputs as a result of a drought that will be passed to our prices in coming quarters. Our Mexican operations produced a very strong first half, a weaker than seasonal Q3, followed by a rebound in Q4. The diversity of our portfolio of bird sizes, geographical market exposure, our culture and our people, are what fundamentally differentiate us from the competition, giving us the potential to reduce volatility and generate higher margins over time, and the results for 2018 represented the power of that strategy. As we begin 2019, conditions in the U.S. commodity markets including exports are already recovering, supporting OECD-FAO data that over the longer term chicken as a protein will continue to outperform in terms of growth potential globally,” stated Bill Lovette, Chief Executive Officer of Pilgrim's.

“Results from Prepared Foods are accelerating in momentum with a strong 15% increase in volume in the U.S. and 33% increase in Mexico, reflecting the investments we made over the past few years to grow capacities and capabilities to meet customer expectations. The build out for innovation and marketing to drive future strong growth continues. We believe the prospects for more growth remain and the improvement in performance is sustainable. To further support the growth initiatives, we are also transitioning to a more innovative package design.”

“We are continuing to improve the performance of our European (Moy Park) operations. Margins have increased since the acquisition just a year and a half ago, and are moving in a positive trajectory. The integration is better than expected and we have extracted both operating and product synergies with our other geographical facilities. The cost of feed inputs have increased due to the drought in Europe and some of this impact will only be mitigated in coming quarters. However, we have plans in place which, combined with the success in improving the profitability of our prior acquisitions, have reaffirmed our belief we have the methodology and the experienced personnel required to continue growing the operating and financial performance of the U.K. and continental Europe business.”

Conference Call Information

A conference call to discuss Pilgrim’s quarterly results will be held tomorrow, February 14, 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: https://services.choruscall.com/links/ppc190214.html

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 May 14, 2019.

About Pilgrim’s Pride

Pilgrim’s employs approximately 52,100 people and operates chicken processing plants and prepared-foods facilities in 14 states, Puerto Rico, Mexico, the U.K, Ireland and continental Europe. 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 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
 [email protected]
 (970) 506-8192
 www.pilgrims.com


PILGRIM’S PRIDE CORPORATION
CONSOLIDATED BALANCE SHEETS
 
       
  December 30, 2018 December 31, 2017
       
  (In thousands, except share and par value data)
Cash and cash equivalents $338,386  $581,510 
Restricted cash and cash equivalents 23,192  8,021 
Trade accounts and other receivables, less allowance for doubtful accounts 561,549  565,478 
Accounts receivable from related parties 1,331  2,951 
Inventories 1,159,519  1,255,070 
Income taxes receivable 38,479   
Prepaid expenses and other current assets 112,023  102,550 
Assets held for sale 178  708 
Total current assets 2,234,657  2,516,288 
Noncurrent income taxes receivable    
Deferred tax assets 4,248   
Other long-lived assets 16,717  18,165 
Identified intangible assets, net 564,128  617,163 
Goodwill 949,750  1,001,889 
Property, plant and equipment, net 2,161,702  2,095,147 
Total assets $5,931,202  $6,248,652 
     
Accounts payable $830,059  $733,027 
Accounts payable to related parties 7,269  2,889 
Revenue contract liability 33,328  36,607 
Accrued expenses and other current liabilities 386,941  410,152 
Income taxes payable 8,221  222,073 
Current maturities of long-term debt 30,405  47,775 
Total current liabilities 1,296,223  1,452,523 
Long-term debt, less current maturities 2,295,190  2,635,617 
Noncurrent income taxes payable 7,731   
Deferred tax liabilities 237,422  208,492 
Other long-term liabilities 75,051  96,359 
Total liabilities 3,911,617  4,392,991 
Commitments and contingencies    
Preferred stock, $.01 par value, 50,000,000 shares authorized; no shares issued    
Common stock, $.01 par value, 800,000,000 shares authorized; 260,396,032 and 260,167,881 shares issued at year-end 2018 and year-end 2017, respectively; 248,965,081 and 248,752,508 shares outstanding at year-end 2018 and year-end 2017, respectively 2,604  2,602 
Treasury stock, at cost, 11,430,951 shares and 11,415,373 shares at year-end 2018 and year-end 2017, respectively (231,994) (231,758)
Additional paid-in capital 1,945,136  1,932,509 
Retained earnings 421,888  173,943 
Accumulated other comprehensive loss (127,834) (31,140)
Total Pilgrim’s Pride Corporation stockholders’ equity 2,009,800  1,846,156 
Noncontrolling interest 9,785  9,505 
Total stockholders’ equity 2,019,585  1,855,661 
Total liabilities and stockholders' equity $5,931,202  $6,248,652 


PILGRIM’S PRIDE CORPORATION
CONSOLIDATED AND COMBINED STATEMENTS OF INCOME
(Unaudited)
             
  Thirteen Weeks Ended Fourteen Weeks Ended Fifty-Two Weeks Ended Fifty-Three Weeks Ended
  December 30, 2018 December 31, 2017 December 30, 2018 December 31, 2017
         
  (In thousands, except per share data)
Net sales $2,656,789  $2,742,352  $10,937,784  $10,767,863 
Cost of sales 2,544,941  2,480,548  10,094,308  9,296,249 
Gross profit 111,848  261,804  843,476  1,471,614 
Selling, general and administrative expense 85,629  105,508  343,025  389,517 
Administrative restructuring charges 2,584  1,279  4,765  9,775 
Operating income 23,635  155,017  495,686  1,072,322 
Interest expense, net of capitalized interest 36,911  40,868  162,812  107,183 
Interest income (3,146) (4,130) (13,811) (7,730)
Foreign currency transaction losses (gains) 19,962  (159) 17,160  (2,659)
Miscellaneous, net (921) (1,340) (2,702) (6,538)
Income before income taxes (29,171) 119,778  332,227  982,066 
Income tax expense (20,944) (14,147) 85,423  263,899 
Net income (8,227) 133,925  246,804  718,167 
Less: Net income from Granite Holdings Sarl prior to acquisition by Pilgrim's Pride Corporation       23,486 
Less: Net income (loss) attributable to noncontrolling interests (903) (412) (1,141) 102 
Net income (loss) attributable to Pilgrim’s Pride Corporation $(7,324) $134,337  $247,945  $694,579 
         
Weighted average shares of common stock outstanding:        
Basic 248,980  248,753  248,945  248,738 
Effect of dilutive common stock equivalents 386  241  204  233 
Diluted 249,366  248,994  249,149  248,971 
         
Net income attributable to Pilgrim's Pride Corporation per share of common stock outstanding:        
Basic $(0.03) $0.54  $1.00  $2.79 
Diluted $(0.03) $0.54  $1.00  $2.79 


PILGRIM’S PRIDE CORPORATION
CONSOLIDATED AND COMBINED STATEMENTS OF CASH FLOWS
 
  Fifty-Two Weeks Ended Fifty-Three Weeks Ended
  December 30, 2018 December 31, 2017
     
  (In thousands)
Cash flows from operating activities:        
Net income $246,804  $718,167 
Adjustments to reconcile net income to cash provided by operating activities:    
Depreciation and amortization 279,657  277,792 
Asset impairment 3,504  5,156 
Foreign currency transaction losses (gains) related to borrowing arrangements 5,267  (1,387)
Loss on early extinguishment of debt recognized as a component of interest expense 15,818   
Amortization of bond premium (668) (180)
Accretion of bond discount 812   
Gain on property disposals (1,889) (506)
Gain on equity method investments (63) (59)
Share-based compensation 13,153  3,020 
Deferred income tax expense (benefit) 32,540  (49,963)
Changes in operating assets and liabilities:    
Trade accounts and other receivables (10,918) (82,169)
Inventories 83,174  (207,399)
Prepaid expenses and other current assets (11,612) (14,827)
Accounts payable and accrued expenses 86,834  (22,827)
Income taxes (248,470) 188,120 
Long-term pension and other postretirement obligations (6,751) (10,864)
Other 4,458  (753)
Cash provided by operating activities 491,650  801,321 
Cash flows from investing activities:    
Acquisitions of property, plant and equipment (348,666) (339,872)
Purchase of acquired business, net of cash acquired   (658,520)
Proceeds from property disposals 9,775  4,475 
Proceeds from settlement of life insurance contract   1,845 
Cash used in investing activities (338,891) (992,072)
Cash flows from financing activities:    
Payment of note payable to affiliate   (753,512)
Proceeds from revolving line of credit and long-term borrowings 748,382  1,871,818 
Payments on revolving line of credit, long-term borrowings and capital lease obligations (1,117,009) (628,677)
Proceeds from equity contribution under Tax Sharing Agreement between JBS USA Food Company Holdings and Pilgrim's Pride Corporation 5,558  5,038 
Payment on early extinguishment of debt (9,781)  
Capital contributions to subsidiary by noncontrolling stockholders 1,421   
Payment of capitalized loan costs (12,581) (13,631)
Purchase of common stock under share repurchase program (236) (14,641)
Cash provided by (used in) financing activities (384,246) 466,395 
Effect of exchange rate changes on cash and cash equivalents 3,534  16,364 
Increase in cash and cash equivalents (227,953) 292,008 
Cash and cash equivalents, beginning of period 589,531  297,523 
Cash and cash equivalents, end of period $361,578  $589,531 
Supplemental Disclosure Information:    
Interest paid (net of amount capitalized) $154,627  $81,260 
Income taxes paid 253,932  122,956 
       

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 Fourteen Weeks Ended Fifty-Two Weeks Ended Fifty-Three Weeks Ended
  December 30, 2018 December 31, 2017 December 30, 2018 December 31, 2017
         
  (In thousands)
Net income $(8,227) $133,925  $246,804  $718,167 
Add:            
Interest expense, net 33,765  36,738  149,001  99,453 
Income tax expense (benefit) (20,944) (14,147) 85,423  263,899 
Depreciation and amortization 68,207  73,167  279,657  277,792 
Minus:        
Amortization of capitalized financing costs 1,232  2,839  5,569  5,968 
EBITDA 71,569  226,844  755,316  1,353,343 
Add:        
Foreign currency transaction losses (gains) 19,962  (159) 17,160  (2,659)
Acquisition charges   4,567  320  19,606 
Restructuring charges 2,584  1,279  4,765  9,775 
Other non-recurring losses and expenses 16,023  8,066  19,485  8,066 
Minus:        
Net income (loss) attributable to noncontrolling interest (903) (412) (1,141) 102 
Adjusted EBITDA $111,041  $241,009  $798,187  $1,388,029 
 

The summary unaudited consolidated income statement data for the twelve months ended December 30, 2018 (the LTM Period) have been calculated by summing each of the unaudited thirteen week periods within the audited fifty-two week period ended December 30, 2018.

 
PILGRIM'S PRIDE CORPORATION
Reconciliation of LTM Adjusted EBITDA
 
(Unaudited) Thirteen Weeks Ended Thirteen Weeks Ended Thirteen Weeks Ended Thirteen Weeks Ended LTM Ended
  April 1, 2018 July 1, 2018 September 30, 2018 December 30, 2018 December 30, 2018
           
  (In thousands)
Net income $119,224  $106,344  $29,463  $(8,227) $246,804 
Add:          
Interest expense, net 48,710  35,433  31,093  33,765  149,001 
Income tax expense (benefit) 36,997  38,522  30,848  (20,944) 85,423 
Depreciation and amortization 69,201  70,278  71,971  68,207  279,657 
Minus:          
Amortization of capitalized financing costs 940  2,453  944  1,232  5,569 
EBITDA 273,192  248,124  162,431  71,569  755,316 
Add:          
Foreign currency transaction losses (gains) (1,721) 5,630  (6,711) 19,962  17,160 
Acquisition charges 179  125  16    320 
Restructuring charges 789  1,135  257  2,584  4,765 
Other non-recurring losses and expenses   3,298  164  16,023  19,485 
Minus:          
Net income (loss) attributable to noncontrolling interest (194) (197) 153  (903) (1,141)
Adjusted EBITDA $272,633  $258,509  $156,004  $111,041  $798,187 


PILGRIM'S PRIDE CORPORATION
Reconciliation of EBITDA Margin
 
(Unaudited) Thirteen Weeks Ended Fourteen Weeks Ended Fifty-Two Weeks Ended Fifty-Three Weeks Ended Thirteen Weeks Ended Fourteen Weeks Ended Fifty-Two Weeks Ended Fifty-Three Weeks Ended
  December 30, 2018 December 31, 2017 December 30, 2018 December 31, 2017 December 30, 2018 December 31, 2017 December 30, 2018 December 31, 2017
                 
  (In thousands)
Net income $(8,227) $133,925  $246,804  $718,167  (0.31)% 4.88% 2.26% 6.67%
Add:                
Interest expense, net 33,765  36,738  149,001  99,453  1.27% 1.34% 1.36% 0.92%
Income tax expense (benefit) (20,944) (14,147) 85,423  263,899  (0.79)% (0.52)% 0.78% 2.45%
Depreciation and amortization 68,207  73,167  279,657  277,792  2.57% 2.67% 2.56% 2.58%
Minus:                
Amortization of capitalized financing costs 1,232  2,839  5,569  5,968  0.05% 0.10% 0.05% 0.06%
EBITDA 71,569  226,844  755,316  1,353,343  2.69% 8.27% 6.91% 12.57%
Add:                
Foreign currency transaction losses (gains) 19,962  (159) 17,160  (2,659) 0.75% (0.01)% 0.16% (0.02)%
Acquisition charges   4,567  320  19,606  % 0.17% % 0.18%
Restructuring charges 2,584  1,279  4,765  9,775  0.10% 0.05% 0.04% 0.09%
Other non-recurring losses and expenses 16,023  8,066  19,485  8,066  0.60% 0.29% 0.18% 0.07%
Minus:                
Net income (loss) attributable to noncontrolling interest (903) (412) (1,141) 102  (0.03)% (0.02)% (0.01)% %
Adjusted EBITDA $111,041  $241,009  $798,187  $1,388,029  4.18% 8.79% 7.30% 12.89%
                 
Net Revenue: $2,656,789  $2,742,352  $10,937,784  $10,767,863  $2,656,789  $2,742,352  $10,937,784  $10,767,863 
                                 

A reconciliation of GAAP operating income to adjusted operating income is as follows:

 
PILGRIM'S PRIDE CORPORATION
Reconciliation of Adjusted Operating Income
(Unaudited)
 
 Thirteen Weeks Ended Fourteen Weeks Ended Fifty-Two Weeks Ended Fifty-Three Weeks Ended
 December 30, 2018 December 31, 2017 December 30, 2018 December 31, 2017
        
 (In thousands)
GAAP operating income (U.S. operations)$(9,579) $122,370  $291,381  $841,491 
Administrative restructuring charges(41) 529  2,140  9,025 
Acquisition charges  4,567  320  19,606 
Other non-recurring losses and expenses14,867  8,066  14,867  8,066 
Adjusted operating income (U.S. operations)$5,247  $135,532  $308,708  $878,188 
        
Adjusted operating income margin (U.S. operations)0.29% 7.19% 4.16% 11.80%
        
GAAP operating income (Mexico operations)$17,137  $7,390  $119,649  $153,631 
Foreign exchange  6,100    (13,000)
Adjusted operating income (Mexico operations)$17,137  $13,490  $119,649  $140,631 
        
Adjusted operating income margin (Mexico operations)5.33% 4.04% 8.78% 10.59%
        
GAAP operating income (Europe operations)$15,979  $25,231  $84,524  $77,105 
Administrative restructuring charges2,625  750  2,625  750 
Other non-recurring losses and expenses1,156    4,618   
Adjusted operating income (Europe operations)$19,760  $25,981  $91,767  $77,855 
        
Adjusted operating income margin (Europe operations)3.84% 4.97% 4.27% 3.90%
            

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 Net Income
(Unaudited)
 
 Thirteen Weeks Ended Fourteen Weeks Ended Fifty-Two Weeks Ended Fifty-Three Weeks Ended
 December 30, 2018 December 31, 2017 December 30, 2018 December 31, 2017
        
 (In thousands, except per share data)
Net income (loss) attributable to Pilgrim's Pride Corporation$(7,324) $134,337  $247,945  $694,579 
Adjustments, net of tax:           
Loss on early extinguishment of debt    12,449  113 
Acquisition and restructuring charges1,919    3,778  14,282 
Other non-recurring losses and expenses11,903    14,475   
Foreign currency transaction losses (gains)14,829  (107) 12,748  (1,802)
 $21,327  $134,230  $291,395  $707,172 
U.S. Tax Cuts & Jobs Act transition tax    26,400   
Adjusted net income (loss)$21,327  $134,230  $317,795  $707,172 
Weighted average diluted shares of common stock outstanding249,366  248,994  249,149  248,971 
Adjusted net income (loss) per common diluted share$0.09  $0.54  $1.28  $2.84 
 

A reconciliation of GAAP to non-GAAP financial measures. Net income (loss) per share is calculated by dividing the net income (loss) attributable to Pilgrim's Pride Corporation stockholders by the weighted average number of diluted shares.

 
PILGRIM'S PRIDE CORPORATION
Reconciliation of GAAP EPS to Adjusted EPS
(Unaudited)
 
 Thirteen Weeks Ended Fourteen Weeks Ended Fifty-Two Weeks Ended Fifty-Three Weeks Ended
 December 30, 2018 December 31, 2017 December 30, 2018 December 31, 2017
        
 (In thousands, except per share data)
GAAP EPS$(0.03) $0.54  $1.00  $2.79 
Adjustments, net of tax:           
Loss on early extinguishment of debt    0.05   
Acquisition and restructuring charges0.01    0.02  0.06 
Other non-recurring losses and expenses0.05    0.05   
Foreign currency transaction losses (gains)0.06    0.05  (0.01)
 $0.09  $0.54  $1.17  $2.84 
U.S. Tax Cuts & Jobs Act transition tax    0.11   
Adjusted EPS$0.09  $0.54  $1.28  $2.84 
        
Weighted average diluted shares of common stock outstanding249,366  248,994  249,149  248,971 


PILGRIM'S PRIDE CORPORATION
Supplementary Selected Segment and Geographic Data
(Unaudited)
 
  Thirteen Weeks Ended Fourteen Weeks Ended Fifty-Two Weeks Ended Fifty-Three Weeks Ended
  December 30, 2018 December 31, 2017 December 30, 2018 December 31, 2017
         
  (In thousands)
Sources of net sales by country of origin:                
U.S. $1,820,952  $1,886,133  $7,425,661  $7,443,222 
Europe 514,541  522,465  2,148,666  1,996,319 
Mexico 321,296  333,754  1,363,457  1,328,322 
Total net sales $2,656,789  $2,742,352  $10,937,784  $10,767,863 
         
Sources of cost of sales by country of origin:        
U.S. $1,772,730  $1,691,586  $6,909,779  $6,348,411 
Europe 476,844  472,016  1,977,838  1,808,139 
Mexico 295,465  316,972  1,206,823  1,139,794 
Elimination (98) (26) (132) (95)
Total cost of sales $2,544,941  $2,480,548  $10,094,308  $9,296,249 
         
Sources of gross profit by country of origin:        
U.S. $48,222  $194,549  $515,882  $1,094,811 
Europe 37,697  50,446  170,828  188,180 
Mexico 25,831  16,783  156,634  188,528 
Elimination 98  26  132  95 
Total gross profit $111,848  $261,804  $843,476  $1,471,614 
         
Sources of operating income by country of origin:        
U.S. $(9,579) $122,370  $291,381  $841,491 
Europe 15,979  25,231  84,524  77,105 
Mexico 17,137  7,390  119,649  153,631 
Elimination 98  26  132  95 
Total operating income $23,635  $155,017  $495,686  $1,072,322 
 

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