Close

Form 8-K PILGRIMS PRIDE CORP For: Oct 29

FREE Breaking News Alerts from StreetInsider.com!

E-mail Address

StreetInsider.com Top Tickers, 4/25/2024

1. META
2. CMG
3. LRCX
4. IBM
5. SPY
6. BA
7. HCP
8. SNAP
9. TMUS
10. INTC


October 29, 2014 4:54 PM EDT


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of report (Date of earliest event reported): October 29, 2014
PILGRIM'S PRIDE CORPORATION
(Exact Name of registrant as specified in its charter)
�
Delaware
1-9273
75-1285071
(State or other jurisdiction of incorporation)
(Commission File Number)
(IRS Employer Identification No.)
�
�
�
1770 Promontory Circle
Greeley, CO
80634-9038
(Address of principal executive offices)
(Zip Code)
Registrant's telephone number, including area code: (970) 506-8000
�
Not Applicable
(Former name or former address, if changed since last report.)
�
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
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.
On October 29, 2014 the Registrant issued a press release, a copy of which is attached hereto as Exhibit 99.1 and is incorporated herein by reference.





Item 9.01 Financial Statements and Exhibits.
Exhibit 99.1����Press release dated October 29, 2014





SIGNATURE �
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
�
�
�
PILGRIMS PRIDE CORPORATION
�
�
�
�
Date:
October 29, 2014
�
/s/ Fabio Sandri
�
�
�
Fabio Sandri
�
�
�
Chief Financial Officer





Exhibit Index
Exhibit 99.1����Press release dated October 29, 2014







Pilgrims Pride Reports EBITDA of $435 Million and 19.2% EBITDA Margin for the Third Quarter

GREELEY, Colo., October 29, 2014 - Pilgrims Pride Corporation (NASDAQ: PPC) reports third quarter 2014 earnings with Net Sales of $2.3 billion, Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA") of $435.0 million, and Net Income of $256.0 million, resulting in diluted Earnings Per Share of $0.99 for the quarter. These results compare to Net Sales of $2.1 billion, Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA") of $222.5 million, and Net Income of $160.9 million, resulting in diluted Earnings Per Share of $0.62 for the third quarter of 2013.

"Our third quarter results reflect the discipline that Pilgrim's has demonstrated in managing the variables within our control as well as the strength we've seen in the chicken markets" stated Bill Lovette, Chief Executive Officer of Pilgrim's. "Our focus has been, and continues to be, the consistent execution of our strategy to be a valued partner to our key customers, relentless pursuit of operational excellence and value-added export growth. We are optimistic that we will continue to be one of the more profitable operators with our management philosophy conducive to continually operating at the top of our industry, even with varying levels of strength in chicken markets

We are pleased about the level of engagement from our team members as we move into 2015.Through our budgeting process for next year we have identified new targeted capital investments and additional operational improvement opportunities that will continue our trajectory towards our vision of being the best managed and most respected company in the industry."

Conference Call Information
A conference call to discuss Pilgrims quarterly results will be held tomorrow, October 30, 2014 at 7:00 a.m. MDT (9 a.m. EDT). 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: http://services.choruscall.com/links/ppc141030.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 (877) 270-2148 within the US or +1 (412) 902-6510 internationally and requesting the Pilgrims 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 Pilgrims 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 February 12, 2015.

About Pilgrims Pride

Pilgrims Pride Corporation employs approximately 35,500 people and operates chicken processing plants and prepared-foods facilities in 12 states, Puerto Rico and Mexico. The Companys primary distribution is through retailers and foodservice distributors.

Forward-Looking Statements

Statements contained in this press release that state the intentions, plans, hopes, beliefs, anticipations, expectations or predictions of the future of Pilgrims 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 Companys business plan to achieve desired cost savings and profitability; future pricing for feed ingredients and the Companys products; outbreaks of avian influenza or other diseases, either in Pilgrims Prides flocks or elsewhere, affecting its ability to conduct its operations and/or demand for its poultry products; contamination of Pilgrims Prides 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, Pilgrims Prides leverage; changes in laws or regulations affecting Pilgrims Prides 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 Pilgrims 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 Pilgrims Prides 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 Companys Annual Report on Form 10-K and subsequent filings with the Securities and Exchange Commission. Pilgrims 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:
Pilgrim's Pride Corp Investor Relations
�
�
www.pilgrims.com





PILGRIMS PRIDE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS



September�28, 2014

December�29, 2013


(Unaudited)


�

(In thousands)
Cash and cash equivalents

$
868,597


$
508,206

Investment in available-for-sale securities




96,902

Trade accounts and other receivables, less allowance for doubtful accounts

413,402


376,678

Account receivable from JBS USA, LLC

240


2,388

Inventories

817,892


808,832

Income taxes receivable




64,868

Current deferred tax assets

2,227


2,227

Prepaid expenses and other current assets

77,393


61,848

Assets held for sale

1,419


7,033

Total current assets

2,181,170


1,928,982

Deferred tax assets

85,213


18,921

Other long-lived assets

30,766


40,163

Identified intangible assets, net

28,219


32,525

Property, plant and equipment, net

1,180,414


1,151,811

Total assets

$
3,505,782


$
3,172,402








Accounts payable

$
383,779


$
370,360

Account payable to JBS USA, LLC

1,969


3,934

Accrued expenses and other current liabilities

307,153


283,355

Income taxes payable

176,153




Current deferred tax liabilities

15,070


15,515

Current maturities of long-term debt

260


410,234

Total current liabilities

884,384


1,083,398

Long-term debt, less current maturities

502,115


501,999

Deferred tax liabilities




13,944

Other long-term liabilities

88,490


80,459

Total liabilities

1,474,989


1,679,800

Common stock

2,590


2,590

Additional paid-in capital

1,656,623


1,653,119

Retained earnings (accumulated deficit)

424,305


(120,156
)
Accumulated other comprehensive loss

(55,815
)

(45,735
)
Total Pilgrims Pride Corporation stockholders equity

2,027,703


1,489,818

Noncontrolling interest

3,090


2,784

Total stockholders equity

2,030,793


1,492,602

Total liabilities and stockholders equity

$
3,505,782


$
3,172,402






PILGRIMS PRIDE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)

�

Thirteen Weeks Ended

Thirty-Nine Weeks Ended
�

September�28, 2014

September�29, 2013

September�28, 2014

September�29, 2013
�

(In thousands, except per share data)
Net sales

$
2,268,048


$
2,142,815


$
6,472,929


$
6,363,863

Cost of sales

1,817,783


1,906,242


5,458,083


5,726,348

Gross profit

450,265


236,573


1,014,846


637,515

Selling, general and administrative expense

44,629


43,797


138,437


131,888

Administrative restructuring charges

135


3,658


2,286


4,622

Operating income

405,501


189,118


874,123


501,005

Interest expense, net of capitalized interest

11,372


20,413


45,407


68,199

Interest income

(1,171
)

(571
)

(2,974
)

(1,494
)
Foreign currency transaction loss (gain)

6,414


2,682


4,932


4,771

Miscellaneous, net

(610
)

(8
)

(2,609
)

(730
)
Income before income taxes

389,496


166,602


829,367


430,259

Income tax expense

133,693


5,578


284,932


24,216

Net income

255,803


161,024


544,435


406,043

Less: Net income (loss) attributable to noncontrolling interests

(181
)

107


(26
)

(161
)
Net income attributable to Pilgrims Pride Corporation

$
255,984


$
160,917


$
544,461


$
406,204










Weighted average shares of common stock outstanding:








Basic

258,999


258,826


258,966


258,825

Effect of dilutive common stock equivalents

523


560


482


341

Diluted

259,522


259,386


259,448


259,166










Net income attributable to Pilgrim's Pride Corporation per share of
common stock outstanding:








Basic

$
0.99


$
0.62


$
2.10


$
1.57

Diluted

$
0.99


$
0.62


$
2.10


$
1.57






PILGRIMS PRIDE CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)

�

Thirty-Nine Weeks Ended
�

September�28, 2014

September�29, 2013
�

(In thousands)
Cash flows from operating activities:




Net income

$
544,435


$
406,043

Adjustments to reconcile net income to cash provided by operating activities:




Depreciation and amortization

112,740


113,853

Foreign currency transaction losses

8,585


3,734

Accretion of bond discount

342


342

Gain on property disposals

(1,112
)

(509
)
Gain on investment securities

(49
)



Share-based compensation

3,504


2,415

Deferred income tax benefit

(79,619
)



Changes in operating assets and liabilities:




Trade accounts and other receivables

(35,785
)

(25,458
)
Inventories

(10,339
)

39,421

Prepaid expenses and other current assets

(16,694
)

(17,304
)
Accounts payable, accrued expenses and other current liabilities

36,686


69,895

Income taxes

239,944


(1,818
)
Deposits




1,898

Long-term pension and other postretirement obligations

(1,764
)

(3,174
)
Other operating assets and liabilities

1,534


3,921

Cash provided by operating activities

802,408


596,716

Cash flows from investing activities:




Acquisitions of property, plant and equipment

(131,349
)

(76,293
)
Purchases of investment securities

(55,100
)



Proceeds from sale or maturity of investment securities

152,050




Proceeds from property disposals

8,422


3,330

Cash provided by (used in) investing activities

(25,977
)

(72,963
)
Cash flows from financing activities:




Proceeds from revolving line of credit




505,600

Payments on revolving line of credit, long-term borrowings and capital lease
obligations

(410,199
)

(758,283
)
Sale of subsidiary common stock

332




Cash used in financing activities

(409,867
)

(257,689
)
Effect of exchange rate changes on cash and cash equivalents

(6,173
)

(3,928
)
Increase (decrease) in cash and cash equivalents

360,391


262,136

Cash and cash equivalents, beginning of period

508,206


68,180

Cash and cash equivalents, end of period

$
868,597


$
330,316






EBITDA is defined as the sum of net income (loss) plus interest, taxes, depreciation and amortization. Adjusted EBITDA is defined as the sum of EBITDA plus restructuring charges, reorganization items and loss on early extinguishment of debt less 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 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 Companys 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.

(Unaudited)
�
Thirteen Weeks Ended
�
Thirty-Nine Weeks Ended
�
�
September 28, 2014
�
September 29, 2013
�
September 28, 2014
�
September 29, 2013
�
�
(In thousands)
Net income from continuing operations
�
$
255,803


$
161,024


$
544,435


$
406,043

Add:
�

�
�
�
�
�
�
Interest expense, net
�
10,201


19,842


42,433

�
66,705

Income tax expense (benefit)
�
133,693


5,578


284,932


24,216

Depreciation and amortization
�
36,218

�
37,914

�
112,740

�
113,853

Asset impairments
�


�
361

�


�
361

Minus:
�

�
�
�
�
�
�
Amortization of capitalized financing costs
�
871

�
2,204

�
7,364

�
7,238

EBITDA
�
435,044

�
222,515

�
977,176

�
603,940

Add:
�

�
�
�
�
�
�
Restructuring charges
�
135

�
3,658

�
2,286

�
4,622

Minus:
�

�
�
�
�
�
�
���Net income (loss) attributable to noncontrolling interest
�
(181
)
�
106

�
(26
)
�
(162
)
Adjusted EBITDA
�
$
435,360

�
$
226,067

�
$
979,488

�
$
608,724






The summary unaudited consolidated income statement data for the last twelve months ended September 28, 2014 (the LTM Period) have been calculated by subtracting the applicable unaudited consolidated income statement data for the thirty-nine weeks ended September 29, 2013 from the sum of (1) the applicable audited consolidated income statement data for the year ended December 29, 2013 and (2) the applicable unaudited consolidated income statement data for the thirty-nine weeks ended September 28, 2014.
(Unaudited)
�
Thirteen Weeks Ended
�
Thirteen Weeks Ended
�
Thirteen Weeks Ended
�
Thirteen Weeks Ended
�
LTM Ended
�
�
December 29, 2013
�
March 30, 2014
�
June 29, 2014
�
September 28, 2014
�
September 28, 2014
�
(In thousands)
Net income from continuing operations
�
$
143,670

�
$
98,187

�
$
190,445

�
$
255,803

�
$
688,105

Add:
�
�
�
�
�
�
�

�
�
Interest expense, net
�
18,176

�
18,662

�
13,570

�
10,201

�
60,609

Income tax expense (benefit)
�
11

�
52,012

�
99,227

�
133,693

�
284,943

Depreciation and amortization
�
36,670

�
38,260

�
38,261

�
36,218

�
149,409

Asset impairments
�


�


�


�


�


Minus:
�
�
�
�
�
�
�

�

Amortization of capitalized financing costs
�
2,069

�
3,586

�
2,906

�
871

�
9,432

EBITDA
�
196,458

�
203,535

�
338,597

�
435,044

�
1,173,634

Add:
�
�
�
�
�
�
�

�

Restructuring charges
�
1,039

�
1,713

�
438

�
135

�
3,325

Minus:
�
�
�
�
�
�
�

�

���Net income (loss) attributable to noncontrolling interest
�
319

�
70

�
85

�
(181
)
�
293

Adjusted EBITDA
�
$
197,178

�
$
205,178

�
$
338,950

�
$
435,360

�
$
1,176,666






Net debt is defined as total long term debt less current maturities, plus current maturities of long term debt, minus cash, cash equivalents and investments in available-for-sale securities.� Net debt is presented because it is used by management, and we believe it is frequently used by securities analysts, investors and other parties, in addition to and not in lieu of debt as presented under GAAP, to compare the indebtedness of companies.� A reconciliation of net debt is as follows:
PILGRIM'S PRIDE CORPORATION
Reconciliation of Net Debt
(Unaudited)
�
December 30,
�
December 29,
�
Thirty-Nine Weeks Ended
�
2012
�
2013
�
September 28, 2014
�
September 29, 2013
�
(in thousands)
Long term debt, less current maturities
$
1,148,870

�
$
501,999

�
$
502,115

�
$
912,019

Add:� Current maturities of long term debt
15,886

�
410,234

�
260

�
396

Minus:� Cash and cash equivalents
68,180

�
508,206

�
868,597

�
330,316

Minus:� Available-for-sale Securities


�
96,902

�


�


Net debt (Cash position)
$
1,096,576

�
$
307,125

�
$
(366,222
)
�
$
582,099






PILGRIM'S PRIDE CORPORATION
Supplementary Selected Segment and Geographic Data
�
�
Thirteen Weeks Ended
�
Thirty-Nine Weeks Ended
�
September 28, 2014
�
September 29, 2013
�
September 28, 2014
�
September 29, 2013
�
(In thousands)
�
(Unaudited)
Sources of net sales by country of origin:
�
�
�
�
�
�
�
US:
$
2,026,277

�
$
1,932,634

�
5,758,704

�
$
5,662,991

Mexico:
241,771

�
210,181

�
714,225

�
700,872

Total net sales:
$
2,268,048

�
$
2,142,815

�
$
6,472,929

�
$
6,363,863

�
�
�
�
�
�
�
�
Sources of cost of sales by country of origin:
�
�
�
�
�
�
�
US:
$
1,634,863

�
$
1,702,791

�
4,900,087

�
$
5,139,883

Mexico:
182,920

�
203,451

�
557,996

�
586,465

Total cost of sales:
$
1,817,783

�
$
1,906,242

�
$
5,458,083

�
$
5,726,348

�
�
�
�
�
�
�
�
Sources of gross profit by country of origin:
�
�
�
�
�
�
�
US:
$
391,414

�
$
229,843

�
$
858,617

�
$
523,108

Mexico:
58,851

�
6,730

�
156,229

�
114,407

Total gross profit:
$
450,265

�
$
236,573

�
$
1,014,846

�
$
637,515






Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In





Related Categories

SEC Filings