Sign In  |  Register  |  About Walnut Creek Guide  |  Contact Us

Walnut Creek, CA
September 01, 2020 1:43pm
7-Day Forecast | Traffic
  • Search Hotels in Walnut Creek Guide

  • CHECK-IN:
  • CHECK-OUT:
  • ROOMS:

Pilgrim’s Pride Reports First Quarter 2023 Results with $4.2 Billion in Net Sales and Operating Income of $31.3 Million

GREELEY, Colo., April 26, 2023 (GLOBE NEWSWIRE) -- Pilgrim’s Pride Corporation (NASDAQ: PPC), one of the world's largest poultry producers, reports its first quarter 2023 financial results.

First Quarter Highlights

  • Net Sales of $4.2 billion.
  • GAAP Net Income of $5.6 million and GAAP EPS of $0.02. Adjusted Net Income of $19.0 million or Adjusted EPS of $0.08.
  • Consolidated GAAP operating income margin of 0.8%.
  • Adjusted EBITDA of $151.9 million, or a 3.6% margin, with adjusted EBITDA margins of 1.8% in the U.S., 5.3% in the U.K. & Europe, and 8.5% in Mexico.
  • Our U.S. business improved relative to prior quarter due to our diversified portfolio across bird sizes and branded offerings, operational excellence improvements, and Key Customer growth despite elevated grain pricing, depressed commodity values, and continued inflation.
  • Prepared Foods business continued its momentum in branded fully cooked products as Just Bare® and Pilgrim’s® collectively grew over 68% year over year. E-commerce remains a key contributor to our branded sales with 19% share.
  • The U.K. and Europe business continued to recover given benefits from back office integration, manufacturing network optimization, and growth and innovation with Key Customers.
  • Mexico business rebounded as previous challenges in live operations diminished and overall market fundamentals returned to more balanced levels during the quarter.
  • We successfully executed a $1 Billion bond offering in unsecured investment grade debt, with great market support, being significantly oversubscribed.
  • We continued to grow and diversify our portfolio, support our Key Customer growth and operational excellence efforts as our expansion at Athens, Georgia facility, automation improvements, and our new protein conversion plant in south Georgia all remain on track.
  • Our journey to be a Sustainability leader continued as we recently unveiled an advanced poultry farm in our U.K. & Europe region that can eliminate nearly all its greenhouse gas emissions as we work with our entire supply chain to achieve our ambitious Sustainability targets.

(Unaudited) Three Months Ended
  March 26,
2023
 March 27,
2022
 Y/Y Change
  (In millions, except per share and percentages)
Net sales $4,165.6  $4,240.4  (1.8)%
U.S. GAAP EPS $0.02  $1.15  (98.3)%
Operating income $31.3  $402.0  (92.2)%
Adjusted EBITDA(1) $151.9  $501.8  (69.7)%
Adjusted EBITDA margin(1)  3.6%  11.8% -8.2pts

(1)         Reconciliations for non-U.S. GAAP measures are provided in subsequent sections within this release.

“Our strategy of fostering our partnerships with Key Customers, operational excellence and growing our diversified portfolio of businesses, has demonstrated its resilience to a variety of market challenges over the last few years,” said Fabio Sandri, Chief Executive Officer.

“Despite improving market fundamentals during the quarter, business conditions remained difficult given elevated input costs, persistent inflation, and ample protein availability. Nonetheless, our team members’ relentless determination supported an improvement in margins relative to the prior quarter in all geographies,” said Fabio Sandri.

The U.S. business improved on the strength of both Small Birds and Prepared Foods. Case Ready continued to drive growth above industry averages with Key Customers, whereas Big Bird Debone made operational improvements throughout the quarter.

“Our U.S. commodity business continued to face exceptionally challenging circumstances, especially in January. Nevertheless, our diverse portfolio across bird sizes and branded offerings mitigated market impacts, whereas our intense focus on operational excellence enhanced our performance. Our commitment to profitable growth continues as our automation projects, plant expansion at Athens, Georgia, and construction of a new protein conversion plant in south Georgia all remain on track,” remarked Fabio Sandri.

Although the U.K. and Europe business also faced continued inflationary headwinds and seasonal changes in demand, investments in network optimization and key customer partnerships alleviated these impacts as adjusted EBITDA margins continue to improve.

“Our U.K. and Europe team worked diligently of over the past year to mitigate inflationary supply chain pressures. Their relentless focus on driving scale and cost synergies across our businesses enhanced our ability to work and grow with Key Customers”, said Fabio Sandri.

The Mexico business rebounded solidly throughout the quarter as live operations improved and market fundamentals stabilized. As a result, margins returned to historical levels.

“I’m proud of the Mexico team to quickly remediate pressing issues in live operations to meet Key Customer needs, drive operational excellence to alleviate the impact from demanding business conditions, and diversify our portfolio through innovation and branded growth,” remarked Fabio Sandri.

Pilgrim’s also continues to drive its Sustainability efforts as it recently unveiled a state-of-the-art poultry farm in the U.K. that can reduce emissions by nearly 100% from the redesign of housing along with the application of solar and heating technologies.

“Throughout the past year, we’ve had an intense focus on reducing energy intensity at our processing plants. I’m pleased that we’ve extended our efforts throughout our supply chain to create ways to further reduce our greenhouse gas emissions footprint, creating a better future for all team members,” said Fabio Sandri.

Conference Call Information

A conference call to discuss Pilgrim’s quarterly results will be held tomorrow, April 27, 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/ppc230427.html

You may also reach the pre-registration link by logging in through the investor section of our website at https://ir.pilgrims.com in the “Events & Presentations” section.

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.”

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.

About Pilgrim’s Pride

Pilgrim’s employs approximately 62,000 people and operates protein processing plants and prepared-foods facilities in 14 states, Puerto Rico, Mexico, the U.K, the Republic of 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. Without limiting the foregoing, words such as “anticipates,” “believes,” “estimates,” “expects,” “intends,” “may,” “plans,” “projects,” “should,” “targets,” “will” and the negative thereof and similar words and expressions are intended to identify 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: the impact of the COVID-19 pandemic, efforts to contain the pandemic and resulting economic downturn on our operations and financial condition, including the risk that our health and safety measures at Pilgrim’s Pride production facilities will not be effective, the risk that we may be unable to prevent the infection of our employees at these facilities, and the risk that we may need to temporarily close one or more of our production facilities; the risk that we may experience decreased production and sales due to the changing demand for food products; the risk that we may face a significant increase in delayed payments from our customers; and additional risks related to COVID-19 set forth in our most recent Form 10-K and Form 10-Q filed with the SEC; 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 channels, including, but not limited to, the impacts of the Russia-Ukraine conflict; the risk of cyber-attacks, natural disasters, power losses, unauthorized access, telecommunication failures, and other problems on our information systems; and the impact of uncertainties of litigation and other legal matters described in our most recent Form 10-K and Form 10-Q, including the In re Broiler Chicken Antitrust Litigation, as well as other risks described under “Risk Factors” in the Company’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and subsequent filings with the Securities and Exchange Commission. The forward-looking statements in this release speak only as of the date hereof, and the Company undertakes no obligation to update any such statement after the date of this release, whether as a result of new information, future developments or otherwise, except as may be required by applicable law.

Contact:Andrew Rojeski
 Head of Strategy, Investor Relations, & Net Zero Programs
 IRPPC@pilgrims.com
 www.pilgrims.com


PILGRIM’S PRIDE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
     
  (Unaudited)  
  March 26, 2023 December 25, 2022
  (In thousands)
Cash and cash equivalents $150,687  $400,988 
Restricted cash and restricted cash equivalents  33,879   33,771 
Trade accounts and other receivables, less allowance for credit losses  1,237,366   1,097,212 
Accounts receivable from related parties  2,125   2,512 
Inventories  2,022,110   1,990,184 
Income taxes receivable  143,974   155,859 
Prepaid expenses and other current assets  232,453   211,092 
Total current assets  3,822,594   3,891,618 
Deferred tax assets  7,955   1,969 
Other long-lived assets  16,978   41,574 
Operating lease assets, net  290,175   305,798 
Intangible assets, net  848,895   846,020 
Goodwill  1,243,613   1,227,944 
Property, plant and equipment, net  2,997,295   2,940,846 
Total assets $9,227,505  $9,255,769 
     
Accounts payable $1,517,470  $1,587,939 
Accounts payable to related parties  20,481   12,155 
Revenue contract liabilities  47,766   34,486 
Accrued expenses and other current liabilities  862,753   850,899 
Income taxes payable  18,951   58,411 
Current maturities of long-term debt  26,326   26,279 
Total current liabilities  2,493,747   2,570,169 
Noncurrent operating lease liabilities, less current maturities  219,350   230,701 
Long-term debt, less current maturities  3,196,615   3,166,432 
Deferred tax liabilities  347,166   364,184 
Other long-term liabilities  64,107   71,007 
Total liabilities  6,320,985   6,402,493 
Common stock  2,619   2,617 
Treasury stock  (544,687)  (544,687)
Additional paid-in capital  1,971,038   1,969,833 
Retained earnings  1,754,686   1,749,499 
Accumulated other comprehensive loss  (290,042)  (336,448)
Total Pilgrim’s Pride Corporation stockholders’ equity  2,893,614   2,840,814 
Noncontrolling interest  12,906   12,462 
Total stockholders’ equity  2,906,520   2,853,276 
Total liabilities and stockholders’ equity $9,227,505  $9,255,769 


PILGRIM’S PRIDE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
     
  Three Months Ended
  March 26, 2023 March 27, 2022
  (In thousands, except per share data)
Net sales $4,165,628  $4,240,395 
Cost of sales  3,992,581   3,698,415 
Gross profit  173,047   541,980 
Selling, general and administrative expense  133,678   139,967 
Restructuring activities  8,026    
Operating income  31,343   402,013 
Interest expense, net of capitalized interest  42,662   36,296 
Interest income  (3,600)  (1,274)
Foreign currency transaction losses  18,143   11,536 
Miscellaneous, net  (22,653)  (324)
Income (loss) before income taxes  (3,209)  355,779 
Income tax expense (benefit)  (8,840)  75,219 
Net income  5,631   280,560 
Less: Net income attributable to noncontrolling interests  444   122 
Net income attributable to Pilgrim’s Pride Corporation $5,187  $280,438 
     
Weighted average shares of Pilgrim's Pride Corporation common stock outstanding:    
Basic  236,585   243,670 
Effect of dilutive common stock equivalents  579   630 
Diluted  237,164   244,300 
     
Net income attributable to Pilgrim's Pride Corporation per share of common stock outstanding:    
Basic $0.02  $1.15 
Diluted $0.02  $1.15 


PILGRIM’S PRIDE CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
 
  Three Months Ended
  March 26, 2023 March 27, 2022
  (In thousands)
Cash flows from operating activities:    
Net income $5,631  $280,560 
Adjustments to reconcile net income to cash provided by operating activities:    
Depreciation and amortization  98,257   102,142 
Deferred income tax benefit  (26,309)  (21,917)
Gain on property disposals  (9,333)  1,855 
Loan cost amortization  1,333   1,280 
Stock-based compensation  1,200   1,963 
Accretion of discount related to Senior Notes  429   429 
Adjustment to previously recognized asset impairment  (130)   
Loss (gain) on equity-method investments  (4)  8 
Changes in operating assets and liabilities:    
Trade accounts and other receivables  (132,791)  (66,669)
Inventories  (30,267)  (146,035)
Prepaid expenses and other current assets  (20,268)  (5,889)
Accounts payable, accrued expenses and other current liabilities  (43,662)  (2,454)
Income taxes  3,149   84,780 
Long-term pension and other postretirement obligations  949   (1,101)
Other operating assets and liabilities  (9,888)  (1,956)
Cash provided by (used in) operating activities  (161,704)  226,996 
Cash flows from investing activities:    
Acquisitions of property, plant and equipment  (131,701)  (81,578)
Proceeds from property disposals  12,631   849 
Proceeds from insurance recoveries  1,599    
Purchase of acquired business, net of cash acquired     (4,847)
Cash used in investing activities  (117,471)  (85,576)
Cash flows from financing activities:    
Proceeds from revolving line of credit and long-term borrowings  35,000   228,505 
Payments on revolving line of credit, long-term borrowings and finance lease obligations  (6,527)  (32,093)
Payment of equity distribution under Tax Sharing Agreement between JBS USA Holdings and Pilgrim’s Pride Corporation  (1,592)  (1,961)
Purchase of common stock under share repurchase program     (27,023)
Payments of capitalized loan costs     (1,098)
Payments on early extinguishment of debt      
Cash provided by financing activities  26,881   166,330 
Effect of exchange rate changes on cash and cash equivalents  2,101   (2,073)
Increase (decrease) in cash, cash equivalents and restricted cash  (250,193)  305,677 
Cash, cash equivalents and restricted cash, beginning of period  434,759   450,121 
Cash, cash equivalents and restricted cash, end of period $184,566  $755,798 


PILGRIM’S PRIDE CORPORATION

Non-GAAP Financial Measures Reconciliation

(Unaudited)

“EBITDA” is defined as the sum of net income 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: (1) foreign currency transaction losses, (2) costs related to litigation settlements, (3) restructuring activities losses, (4) transaction costs related to acquisitions, (5) property insurance recoveries for Mayfield, Kentucky tornado property damage losses, and (6) net income attributable to noncontrolling interests. 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 U.S. (“U.S. 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 applicable to continuing operations. The Company also believes that Adjusted EBITDA, in combination with the Company’s financial results calculated in accordance with U.S. 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 U.S. GAAP. EBITDA and Adjusted EBITDA have limitations as analytical tools and should not be considered in isolation or as substitutes for an analysis of our results as reported under U.S. GAAP. In addition, other companies in our industry may calculate these measures differently limiting their usefulness as a comparative measure. Because of these limitations, EBITDA and Adjusted EBITDA should not be considered as an alternative to net income as indicators of our operating performance or any other measures of performance derived in accordance with U.S. GAAP. These limitations should be compensated for by relying primarily on our U.S. GAAP results and using EBITDA and Adjusted EBITDA only on a supplemental basis.

PILGRIM'S PRIDE CORPORATION
Reconciliation of Adjusted EBITDA
(Unaudited)
    
 Three Months Ended
 March 26, 2023 March 27, 2022
 (In thousands)
Net income$5,631  $280,560
Add:   
Interest expense, net(a) 39,062   35,022
Income tax expense (benefit) (8,840)  75,219
Depreciation and amortization 98,257   102,142
EBITDA 134,110   492,943
Add:   
Foreign currency transaction losses(b) 18,143   11,536
Litigation settlements(c) 11,200   500
Restructuring activities losses(d) 8,026   
Transaction costs related to acquisitions(e)    717
Minus:   
Property insurance recoveries for Mayfield tornado losses(f) 19,086   3,815
Net income attributable to noncontrolling interest 444   122
Adjusted EBITDA$151,949  $501,759


(a)Interest expense, net, consists of interest expense less interest income.
(b)The Company measures the financial statements of its Mexico reportable segment as if the U.S. dollar were the functional currency. Accordingly, we remeasure assets and liabilities, other than nonmonetary assets, of the Mexico reportable segment at current exchange rates. We remeasure nonmonetary assets using the historical exchange rate in effect on the date of each asset’s acquisition. Currency exchange gains or losses resulting from these remeasurements, as well as, from our U.K. and Europe reportable segment are included in the line item Foreign currency transaction losses in the Condensed Consolidated Statements of Income.
(c)This represents expenses recognized in anticipation of probable settlements in ongoing litigation.
(d)Restructuring charges is primarily related to restructuring initiatives at multiple production facilities throughout our U.K. and Europe reportable segment.
(e)Transaction costs related to acquisitions includes those charges that are incurred in conjunction with business acquisitions.
(f)This represents property insurance recoveries for the property damage losses incurred as a result of the tornado in Mayfield, KY in December 2021.
  

The summary unaudited consolidated income statement data for the twelve months ended March 26, 2023 (the LTM Period) have been calculated by subtracting the applicable unaudited consolidated income statement data for the three months ended March 27, 2022 from the sum of (1) the applicable audited consolidated income statement data for the year ended December 25, 2022 and (2) the applicable unaudited consolidated income statement data for the three months ended March 26, 2023.

PILGRIM'S PRIDE CORPORATION
Reconciliation of LTM Adjusted EBITDA
(Unaudited)
           
  Three Months Ended LTM Ended
  June 26,
2022
 September 25,
2022
 December 25,
2022
 March 26,
2023
 March 26,
2023
  (In thousands)
Net income (loss) $362,021  $258,999 $(155,042) $5,631  $471,609
Add:          
Interest expense, net  37,102   34,222  37,298   39,062   147,684
Income tax expense (benefit)  112,711   65,749  25,256   (8,840)  194,876
Depreciation and amortization  99,854   98,966  102,148   98,257   399,225
EBITDA  611,688   457,936  9,660   134,110   1,213,394
Add:          
Foreign currency transaction losses  2,758   54  16,469   18,143   37,424
Litigation settlements  8,482   19,300  5,804   11,200   44,786
Restructuring activities losses       30,466   8,026   38,492
Transaction costs related to acquisitions  255     (24)     231
Minus:          
Property insurance recoveries for Mayfield tornado losses     16,182  (417)  19,086   34,851
Net income (loss) attributable to noncontrolling interest  (95)  647  (66)  444   930
Adjusted EBITDA $623,278  $460,461 $62,858  $151,949  $1,298,546

EBITDA margins have been calculated by taking the relevant unaudited EBITDA figures, then dividing by net sales for the applicable period. EBITDA margins are presented because they are used by management and we believe it is frequently used by securities analysts, investors and other interested parties, as a supplement to our results prepared in accordance with U.S. GAAP, to compare the performance of companies.

PILGRIM'S PRIDE CORPORATION
Reconciliation of EBITDA Margin
(Unaudited)
         
  Three Months Ended Three Months Ended
  March 26, 2023 March 27, 2022 March 26, 2023 March 27, 2022
  (In thousands)
Net income $5,631  $280,560  0.14%  6.62%
Add:        
Interest expense, net  39,062   35,022  0.94%  0.83%
Income tax expense (benefit)  (8,840)  75,219 (0.21)%  1.77%
Depreciation and amortization  98,257   102,142  2.35%  2.40%
EBITDA  134,110   492,943  3.22%  11.62%
Add:        
Foreign currency transaction losses  18,143   11,536  0.43%  0.27%
Litigation settlements  11,200   500  0.27%  0.01%
Restructuring activities losses  8,026     0.19%  %
Transaction costs related to business acquisitions     717  %  0.02%
Minus:        
Property insurance recoveries for Mayfield tornado losses  19,086   3,815  0.46%  0.09%
Net income attributable to noncontrolling interest  444   122  0.01%  %
Adjusted EBITDA $151,949  $501,759  3.64%  11.83%
         
Net sales $4,165,628  $4,240,395 $4,165,628  $4,240,395 

Adjusted EBITDA by segment figures s are presented because they are used by management and we believe they are frequently used by securities analysts, investors and other interested parties, as a supplement to our results prepared in accordance with U.S. GAAP, to compare the performance of companies.

PILGRIM'S PRIDE CORPORATION
Reconciliation of Adjusted EBITDA
(Unaudited)
                
 Three Months Ended Three Months Ended
 March 26, 2023 March 27, 2022
 U.S. U.K. &
Europe
 Mexico Total U.S. U.K. &
Europe
 Mexico Total
 (In thousands) (In thousands)
Net income (loss)$(53,590) $20,813  $38,408  $5,631  $234,467 $(11,849) $57,942  $280,560
Add:               
Interest expense, net(a) 41,365   (198)  (2,105)  39,062   35,366  582   (926)  35,022
Income tax expense (benefit) (16,822)  5,923   2,059   (8,840)  70,858  (9,631)  13,992   75,219
Depreciation and amortization 60,237   32,277   5,743   98,257   60,392  35,555   6,195   102,142
EBITDA 31,190   58,815   44,105   134,110   401,083  14,657   77,203   492,943
Add:               
Foreign currency transaction losses (gains)(b) 20,313   (616)  (1,554)  18,143   13,301  (4)  (1,761)  11,536
Litigation settlements(c) 11,200         11,200   500        500
Restructuring activities(d)    8,026      8,026           
Transaction costs related to acquisitions(e)             592  125      717
Minus:               
Property insurance recoveries for Mayfield tornado losses(f) 19,086         19,086   3,815        3,815
Net income attributable to noncontrolling interest       444   444        122   122
Adjusted EBITDA$43,617  $66,225  $42,107  $151,949  $411,661 $14,778  $75,320  $501,759


(a)Interest expense, net, consists of interest expense less interest income.
(b)The Company measures the financial statements of its Mexico reportable segment as if the U.S. dollar were the functional currency. Accordingly, we remeasure assets and liabilities, other than nonmonetary assets, of the Mexico reportable segment at current exchange rates. We remeasure nonmonetary assets using the historical exchange rate in effect on the date of each asset’s acquisition. Currency exchange gains or losses resulting from these remeasurements, as well as, from our U.K. and Europe reportable segment are included in the line item Foreign currency transaction losses in the Condensed Consolidated Statements of Income.
(c)This represents expenses recognized in anticipation of probable settlements in ongoing litigation.
(d)Restructuring charges is primarily related to restructuring initiatives at multiple production facilities throughout our U.K. and Europe reportable segment.
(e)Transaction costs related to acquisitions includes those charges that are incurred in conjunction with business acquisitions.
(f)This represents property insurance recoveries for the property damage losses incurred as a result of the tornado in Mayfield, KY in December 2021.
  

Adjusted net income attributable to Pilgrim's Pride Corporation (“Pilgrim's”) is calculated by adding to Net income (loss) attributable to Pilgrim's certain items of expense and deducting from Net income (loss) attributable to Pilgrim's certain items of income, as shown below in the table. Adjusted net income attributable to Pilgrim’s Pride Corporation per common diluted share 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 U.S. GAAP, to compare the performance of companies. Management also believe that this non-U.S. GAAP financial measure, in combination with our financial results calculated in accordance with U.S. GAAP, provides investors with additional perspective regarding the impact of such charges on net income attributable to Pilgrim’s Pride Corporation per common diluted share. Adjusted net income attributable to Pilgrim’s Pride Corporation per common diluted share is not a measurement of financial performance under U.S. GAAP, has limitations as an analytical tool and should not be considered in isolation or as a substitute for an analysis of our results as reported under U.S. GAAP. Management believes that presentation of adjusted net income attributable to Pilgrim’s provides useful supplemental information about our operating performance and enables comparison of our performance between periods because certain costs shown below are not indicative of our current operating performance. A reconciliation of net income (loss) attributable to Pilgrim’s Pride Corporation per common diluted share to adjusted net income attributable to Pilgrim’s Pride Corporation per common diluted share is as follows:

PILGRIM'S PRIDE CORPORATION
Reconciliation of Adjusted Net Income
(Unaudited)
    
 Three Months Ended
 March 26, 2023 March 27, 2022
 (In thousands, except per share data)
Net income attributable to Pilgrim's$5,187  $280,438 
Add:   
Foreign currency transaction losses 18,143   11,536 
Litigation settlements 11,200   500 
Restructuring activities losses 8,026    
Transaction costs related to acquisitions    717 
Minus:   
Property insurance recoveries for Mayfield tornado losses 19,086   3,815 
Adjusted net income attributable to Pilgrim's before tax impact of adjustments 23,470   289,376 
Net tax impact of adjustments(a) (4,424)  (2,226)
Adjusted net income attributable to Pilgrim's$19,046  $287,150 
Weighted average diluted shares of common stock outstanding 237,164   244,300 
Adjusted net income attributable to Pilgrim's per common diluted share$0.08  $1.18 


(a)Net tax expense (benefit) of adjustments represents the tax impact of all adjustments shown above.
  

Adjusted EPS is calculated by dividing the adjusted net income attributable to Pilgrim's stockholders by the weighted average number of diluted shares. Management believes that Adjusted EPS provides useful supplemental information about our operating performance and enables comparison of our performance between periods because certain costs shown below are not indicative of our current operating performance. A reconciliation of U.S. GAAP to non-U.S. GAAP financial measures is as follows:

PILGRIM'S PRIDE CORPORATION
Reconciliation of GAAP EPS to Adjusted EPS
(Unaudited)
    
 Three Months Ended
 March 26, 2023 March 27, 2022
 (In thousands, except per share data)
GAAP EPS$0.02  $1.15 
Add:   
Foreign currency transaction losses 0.08   0.06 
Litigation settlements 0.05    
Restructuring activities losses 0.03    
Transaction costs related to acquisitions     
Minus:   
Property insurance recoveries for Mayfield tornado losses 0.08   0.02 
Adjusted EPS before tax impact of adjustments 0.10   1.19 
Net tax impact of adjustments(a) (0.02)  (0.01)
Adjusted EPS$0.08  $1.18 
    
Weighted average diluted shares of common stock outstanding 237,164   244,300 


(a)Net tax impact of adjustments represents the tax impact of all adjustments shown above.
  


PILGRIM'S PRIDE CORPORATION
Supplementary Selected Segment and Geographic Data
(Unaudited)
     
  Three Months Ended
  March 26, 2023 March 27, 2022
  (In thousands)
Sources of net sales by geographic region of origin:    
U.S. $2,432,568  $2,581,208 
U.K. and Europe  1,239,264   1,191,982 
Mexico  493,796   467,205 
Total net sales $4,165,628  $4,240,395 
     
Sources of cost of sales by geographic region of origin:    
U.S. $2,394,239  $2,159,204 
U.K. and Europe  1,155,071   1,152,903 
Mexico  443,284   386,322 
Elimination  (13)  (14)
Total cost of sales $3,992,581  $3,698,415 
     
Sources of gross profit by geographic region of origin:    
U.S. $38,329  $422,004 
U.K. and Europe  84,193   39,079 
Mexico  50,512   80,883 
Elimination  13   14 
Total gross profit $173,047  $541,980 
     
Sources of operating income (loss) by geographic region of origin:    
U.S. $(28,106) $355,075 
U.K. and Europe  25,261   (21,640)
Mexico  34,175   68,564 
Elimination  13   14 
Total operating income $31,343  $402,013 

Primary Logo

Data & News supplied by www.cloudquote.io
Stock quotes supplied by Barchart
Quotes delayed at least 20 minutes.
By accessing this page, you agree to the following
Privacy Policy and Terms and Conditions.
 
 
Copyright © 2010-2020 WalnutCreekGuide.com & California Media Partners, LLC. All rights reserved.