Pilgrim's Pride Reports Solid Conclusion to Fiscal 2012

Pilgrim's Pride Reports Solid Conclusion to Fiscal 2012

GREELEY, Colo., Feb. 14, 2013 (GLOBE NEWSWIRE) -- Pilgrim's Pride Corporation
(Nasdaq:PPC) reported fourth quarter 2012 results with net sales of $2.2
billion, Earnings Before Interest, Taxes, Depreciation and Amortization
("EBITDA") of $64.4 million and net income of $22.8 million, resulting in
earnings per share of $0.09 for the quarter.

For the full 2012 fiscal year, the Company achieved $8.1 billion in net sales
and $393.9 million of EBITDA. Pilgrim's recognized $174.2 million in net
income for the year, or $0.70 per weighted average share, making it one of the
Company's best results in recent years. Net debt declined to $1.1 billion
during the period, reflecting a year-to-date reduction of $327.8 million.

"The results achieved in 2012 point to a determined and disciplined execution
of the strategy we implemented over a year and half ago. Through our team
members' efforts, we have improved our competitive position significantly over
the past two years and we believe we are well positioned for that to
continue," stated Bill Lovette, Pilgrim's Chief Executive Officer.

Mr. Lovette continued,"While increased chicken pricing have helped offset the
volatile increase in feed costs, our changes in sales mix, yield improvements
and driving costs out of our plants and SG&A have made a pivotal impact. We
continue to focus on creating value for our key customers, relentless pursuit
of operational excellence and growing our value added exports in order to
maintain the trajectory of improvement in 2013 and beyond."

Conference Call Information

A conference call to discuss Pilgrim's quarterly results will be held
tomorrow, February 15 at 7:00 a.m. Mountain (9 a.m. Eastern). 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/ppc130215.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 "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 2, 2013.

About Pilgrim's Pride

Pilgrim's employs approximately 38,000 people and operates chicken processing
plants and prepared-foods facilities in 12 states, Puerto Rico and Mexico. The
Company's primary distribution is through retailers and foodservice

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

Consolidated Balance Sheets
                                                    December 30  December 25
                                                    2012         2011
                                                    (In thousands)
Cash and cash equivalents                            $68,180    $41,609
Restricted cash and cash equivalents                 --          7,680
Investment in available-for-sale securities          --          157
Trade accounts and other receivables, less allowance 384,930     349,222
for doubtful accounts
Account receivable from JBS USA, LLC                 1,514       21,198
Inventories                                          950,296     879,094
Income taxes receivable                              54,719      59,067
Prepaid expenses and other current assets            56,047      52,350
Assets held for sale                                 27,042      53,816
Total current assets                                 1,542,728   1,464,193
Investment in available-for-sale securities          --          497
Deferred tax assets                                  97,431      71,099
Other long-lived assets                              45,523      57,921
Identified intangible assets, net                    38,266      44,083
Property, plant and equipment, net                   1,189,921   1,241,752
Total assets                                         $2,913,869 $2,879,545
Accounts payable                                     $312,365   $328,864
Account payable to JBS USA, LLC                      13,436      11,653
Accrued expenses and other current liabilities       283,540     281,797
Income taxes payable                                 468         --
Current deferred tax liabilities                     104,482     79,248
Current maturities of long-term debt                 15,886      15,611
Total current liabilities                            730,177     717,173
Long-term debt, less current maturities              1,148,870   1,408,001
Note payable to JBS USA Holdings, Inc.               --          50,000
Other long-term liabilities                          125,825     145,941
Total liabilities                                    2,004,872   2,321,115
Common stock                                         2,590       2,143
Additional paid-in capital                           1,642,003   1,443,484
Accumulated deficit                                  (669,711)   (843,945)
Accumulated other comprehensive loss                 (68,511)    (46,070)
Total Pilgrim's Pride Corporation stockholders'      906,371     555,612
Noncontrolling interest                              2,626       2,818
Total stockholders' equity                           908,997     558,430
Total liabilities and stockholders' equity           $2,913,869 $2,879,545

Consolidated Statements of Operations
                          Three Months Ended        Twelve Months Ended
                          December 30  December 25  December 30  December 25
                          2012         2011         2012         2011
                          (In thousands)            (In thousands)
Net sales                  $2,189,661 $1,829,308 $8,121,382 $7,535,698
Costs and expenses:                                            
Cost of sales              2,114,118   1,809,120   7,685,550   7,675,277
Operational restructuring  --          --          --          1,958
Gross profit (loss)        75,543      20,188      435,832     (141,537)
Selling, general and       45,564      48,652      177,041     205,143
administrative expense
Administrative             2,528       14,589      8,449       26,911
restructuring charges, net
Operating income (loss)    27,451      (43,053)    250,342     (373,591)
Interest expense           26,496      28,668      104,926     111,532
Interest income            (511)       (154)       (1,397)     (1,465)
Foreign currency           607         1,366       (4,810)     12,601
transaction losses (gains)
Miscellaneous, net         (1,167)     (2,896)     (1,439)     (9,133)
Income (loss) before       2,026       (70,037)    153,062     (487,126)
income taxes
Income tax expense         (20,324)    15,026      (20,980)    8,564
Net income (loss)          22,350      (85,063)    174,042     (495,690)
Less:Net income (loss)
attributable to            (423)       292         (192)       1,082
noncontrolling interests
Net income (loss)
attributable to Pilgrim's  $22,773    $(85,355)  $174,234   $(496,772)
Pride Corporation
Weighted average shares of                                     
common stock outstanding:
Basic                      258,726     224,996     250,101     214,282
Diluted                    258,887     224,996     250,216     214,282
Net income (loss) per
share of common stock                                          
Basic                      $0.09      $(0.40)    $0.70      $(2.21)
Diluted                    $0.09      $(0.40)    $0.70      $(2.21)

Consolidated Statements of Cash Flows
                                                  Twelve Months Ended       
                                                  December 30  December 25
                                                  2012         2011
                                                  (In thousands)            
Cash flows from operating activities:                          
Net income (loss)                                  $174,042   $(495,690)
Adjustments to reconcile net income (loss)
attributable to Pilgrim's Pride Corporation to                 
cash provided by (used in) operating activities:
Depreciation and amortization                      147,414     209,061
Asset impairment                                   2,770       22,895
Foreign currency transaction losses (gains)        (5,261)     9,980
Accretion of bond discount                         456         453
Gain on property disposals                         5,306       (4,271)
Share-based compensation                           684         567
Deferred income tax benefit                        (1,098)      (7,097)
Changes in operating assets and liabilities:                   
Restricted cash and cash equivalents               12,680      53,273
Trade accounts and other receivables               (14,137)    (63,987)
Inventories                                        (65,870)    122,827
Prepaid expenses and other current assets          (2,600)     27,068
Accounts payable and accrued expenses              (16,520)    (7,274)
Income taxes                                       (33,714)    4,683
Deposits                                           1,783       2,174
Long-term pension and other postretirement         (2,700)     —
Other                                              (3,611)     (3,653)
Cash provided by (used in) operating activities    199,624     (128,991)
Cash flows from investing activities:                          
Acquisitions of property, plant and equipment      (90,327)    (135,968)
Purchases of investment securities                 (162)       (4,596)
Proceeds from sale or maturity of investment       688         15,852
Proceeds from business disposition to Swift Pork   —           13,000
Proceeds from business disposition to JBS Trading  —           24,479
International, Inc.
Proceeds from property sales and disposals         29,400      29,044
Cash used in investing activities                  (60,401)    (58,189)
Cash flows from financing activities:                          
Payments on notes payable to JBS USA               (50,000)    —
Proceeds from notes payable to JBS USA             —           50,000
Proceeds from long-term debt                       851,400     965,689
Payments on long-term debt                         (1,110,711) (881,833)
Proceeds from sale of common stock                 198,282     —
Purchase of remaining interest in subsidiary       —           (2,504)
Payment of capitalized loan costs                  —           (4,395)
Other financing activities                         —           (107)
Cash provided by (used in) financing activities    (111,029)   126,850
Effect of exchange rate changes on cash and cash   (1,623)     (4,138)
Increase (decrease) in cash and cash equivalents   26,571      (64,468)
Cash and cash equivalents, beginning of period     41,609      106,077
Cash and cash equivalents, end of period           68,180      41,609

                         PILGRIM'S PRIDE CORPORATION
                        Selected Financial Information

NOTE:"EBITDA" is defined as the sum of income (loss) from continuing
operations 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 from continuing operations.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.

                             Three Months Ended      Twelve Months Ended
                             December 30 December 25 December 30 December 25
                             2012        2011        2012        2011
                             (In thousands)          (In thousands)
Net income (loss) from        $22,350   $(85,063) $174,042  $(495,690)
continuing operations
Income tax expense (benefit)  (20,325)   15,026     (20,980)   8,564
Interest expense, net         25,985     28,514     103,529    110,067
Depreciation and amortization 39,088     52,355     147,414    211,780
Amortization of capitalized   2,658      2,515      10,063     9,522
loan costs
EBITDA                        64,439     8,317      393,941    (174,801)
Restructuring charges         2,528      14,589     8,449      30,634
Net income (loss)
attributable to               (423)      292        (192)      1,082
noncontrolling interests
Adjusted EBITDA               $67,391   $22,614   $402,583  $(145,249)

Supplementary Selected Segment and Geographic Data
                          Twelve Months Ended                   
                          December 30  December 25              
                          2012         2011                     
Net sales to customers by  (In thousands)                        
country of origin:
Prepared chicken           $2,239,289 $2,135,337             
Fresh chicken              3,583,854   3,160,429               
Export and other chicken   817,723     808,038                 
Other products             608,619     674,923                 
Total US net sales:        7,249,485   6,778,727               
Chicken                    758,023     720,333                 
Other products             113,874     36,638                  
Total Mexico net sales     871,897     756,971                 
Total net sales            $8,121,382 $7,535,698             
                          Three Months Ended        Twelve Months Ended
                          December 30  December 25  December 30  December 25
                          2012         2011         2012         2011
                          (In thousands)            (In thousands)
Net sales to customers by country of                            
US:                        $1,937,207 $1,645,434 $7,249,485 $6,778,727
Mexico:                    252,455     183,874     871,897     756,971
Total net sales            $2,189,662 $1,829,308 $8,121,382 $7,535,698
Cost of sales by country                                       
of origin:
US:                        $1,893,170 $1,621,653 $6,916,874 $6,936,970
Mexico:                    220,949     187,467     768,676     738,307
Total net sales            $2,114,119 $1,809,120 $7,685,550 $7,675,277
Components of gross profit                                     
US:                        $44,037    $23,781    $332,611   $(158,243)
US - Operational           --          --          --          (3,304)
Mexico:                    31,506      (3,593)     103,221     18,663
Total net sales            $75,543    $20,188    $435,832   $(142,884)

CONTACT: Rosemary Geelan
         Pilgrim's Pride Corp Investor Relations
         (970) 506-8192
Press spacebar to pause and continue. Press esc to stop.