Pilgrim's Pride Reports Strong Revenue Growth and Increase of 39% in Net Income for First Quarter 2013 GREELEY, Colo., May 2, 2013 (GLOBE NEWSWIRE) -- Pilgrim's Pride Corporation (Nasdaq:PPC) reported first quarter 2013 earnings results with net sales of $2.0 billion, Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA") of $116.9 million and net income of $54.6 million, resulting in earnings per share of $0.21 for the quarter. This compares to $1.9 billion in sales, EBITDA of $101.5 and Net Income of $39.2 million, with earnings per share of $0.18 in the first quarter of 2012. "Every quarter we see that our strategy and execution is working effectively. We delivered better results year over year despite $141 million of increased feed ingredient costs. By focusing on creating value with our key customers, we have diversified our product mix, honed our execution and are seeing our portfolio of business become a more profitable model," stated Bill Lovette, Pilgrim's Chief Executive Officer. "Our pursuit of operational excellence has resulted in an improved safety record, significantly better than the industry average. We are reducing our turnover and measuring quality at every level of the organization. Despite challenging environmental conditions, Mexico continues to outperform due to its effective business model and the versatility and value that chicken provides to consumers." Mr. Lovette explained, "We made significant steps on our strategy to strengthen our company and our balance sheet. Even with as much improvement as we have demonstrated to date, we believe there is still opportunity to stretch towards our vision of being the best managed and most respected company in the industry." Conference Call Information A conference call to discuss Pilgrim's quarterly results will be held tomorrow, May 3 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/ppc130503.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 August 1, 2013. About Pilgrim's Pride Pilgrim's employs approximately 37,500 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 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 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. PILGRIM'S PRIDE CORPORATION Condensed Consolidated Balance Sheets March 31, December 30 2013 2012 (Unaudited) (In thousands) Cash and cash equivalents $43,560 $68,180 Trade accounts and other receivables, less 390,421 384,930 allowance for doubtful accounts Account receivable from JBS USA, LLC 3,814 1,514 Inventories 972,358 950,296 Income taxes receivable 58,321 54,719 Prepaid expenses and other current assets 64,436 56,047 Assets held for sale 26,832 27,042 Total current assets 1,559,742 1,542,728 Deferred tax assets 97,455 97,431 Other long-lived assets 42,789 45,523 Identified intangible assets, net 36,831 38,266 Property, plant and equipment, net 1,181,518 1,189,921 Total assets $ 2,918,335 $2,913,869 Accounts payable $290,533 $312,365 Account payable to JBS USA, LLC 7,045 13,436 Accrued expenses and other current liabilities 284,641 283,540 Income taxes payable -- 468 Current deferred tax liabilities 104,515 104,482 Current maturities of long-term debt 15,888 15,886 Total current liabilities 702,622 730,177 Long-term debt, less current maturities 1,126,477 1,148,870 Other long-term liabilities 115,053 125,825 Total liabilities 1,944,152 2,004,872 Common stock 2,590 2,590 Additional paid-in capital 1,642,551 1,642,003 Accumulated deficit (615,129) (669,711) Accumulated other comprehensive loss (58,101) (68,511) Total Pilgrim's Pride Corporation stockholders' 971,911 906,371 equity Noncontrolling interest 2,272 2,626 Total stockholders' equity 974,183 908,997 Total liabilities and stockholders' equity $ 2,918,335 $2,913,869 PILGRIM'S PRIDE CORPORATION Condensed Consolidated Statements of Operations (Unaudited) Thirteen Weeks Ended March 31, March 25, 2013 2012 (In thousands, except per share data) Net sales $2,036,929 $1,888,773 Costs and expenses: Cost of sales 1,918,495 1,778,708 Gross profit (loss) 118,434 110,065 Selling, general and administrative 43,992 45,256 expense Administrative restructuring charges, 484 2,885 net Operating income (loss) 73,958 61,924 Interest expense 24,821 28,245 Interest income (216) (274) Foreign currency transaction losses (7,624) (5,928) (gains) Miscellaneous, net (5) (370) Income (loss) before income taxes 56,982 40,251 Income tax expense (benefit) 2,754 653 Net income (loss) 54,228 39,598 Less:Net income (loss) attributable to (354) 425 noncontrolling interests Net income (loss) attributable to $54,582 $39,173 Pilgrim's Pride Corporation Weighted average shares of common stock outstanding: Basic 258,823 223,562 Diluted 258,953 223,631 Net income (loss) per share of common stock outstanding: Basic $0.21 $0.18 Diluted $0.21 $0.18 PILGRIM'S PRIDE CORPORATION Condensed Consolidated Statements of Cash Flows Thirteen Weeks Ended March 31, March 25, 2013 2012 (In thousands) Cash flows from operating activities: Net income (loss) $54,228 $39,598 Adjustments to reconcile net income (loss) attributable to Pilgrim's Pride Corporation to cash provided by (used in) operating activities: Depreciation and amortization 37,790 35,766 Asset impairment -- 1,342 Foreign currency transaction losses (gains) (7,753) (5,407) Accretion of bond discount 114 114 (Loss) Gain on property disposals (1,139) 859 Share-based compensation 548 149 Changes in operating assets and liabilities: Restricted cash and cash equivalents -- 7,996 Trade accounts and other receivables (5,183) 3,043 Inventories (17,061) (25,813) Prepaid expenses and other current assets (6,819) 13,144 Accounts payable and accrued expenses (30,629) (35,003) Income taxes (3,381) (3,421) Long-term pension and other postretirement obligations (421) — Other 345 (2,985) Cash provided by (used in) operating activities 20,639 29,382 Cash flows from investing activities: Acquisitions of property, plant and equipment (25,778) (16,670) Purchases of investment securities -- (88) Proceeds from property sales and disposals 1,660 3,066 Cash used in investing activities (24,118) (13,692) Cash flows from financing activities: Proceeds from revolving line of credit 288,500 183,200 Payments on revolving line of credit, long-term (311,005) (341,802) borrowings and capital lease obligations Payment of note payable to JBS USA -- (50,000) Proceeds from sale of common stock -- 198,379 Cash provided by (used in) financing activities (22,505) (10,223) Effect of exchange rate changes on cash and cash 1,364 494 equivalents Increase (decrease) in cash and cash equivalents (24,620) 5,961 Cash and cash equivalents, beginning of period 68,180 41,609 Cash and cash equivalents, end of period 43,560 47,570 PILGRIM'S PRIDE CORPORATION Selected Financial Information (Unaudited) 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. Thirteen Weeks Ended March 31, March 25, 2013 2012 (In thousands) Net loss from continuing operations $54,228 $39,598 Add: Income tax expense (benefit) 2,754 653 Interest expense, net 24,605 27,971 Depreciation and amortization 37,790 35,766 Minus: Amortization of capitalized loan costs 2,516 2,468 EBITDA 116,861 101,520 Add: Restructuring charges 484 2,885 Minus: Net income attributable to noncontrolling interest (354) 425 Adjusted EBITDA $ 117,699 $ 103,980 PILGRIM'S PRIDE CORPORATION Supplementary Selected Segment and Geographic Data Thirteen Weeks Ended March 31, March 25, 2013 2012 (In thousands) Net sales to customers by country of origin: US: $ 1,808,486 $ 1,684,604 Mexico: 228,443 204,169 Total net sales $ 2,036,929 $ 1,888,773 Cost of sales by country of origin: US: $ 1,729,836 $ 1,600,269 Mexico: 188,659 178,439 Total net sales $ 1,918,495 $ 1,778,708 Components of gross profit US: $78,650 $84,335 Mexico: $39,784 $25,730 Total net sales $118,434 $110,065 CONTACT: Rosemary Geelan Pilgrim's Pride Corp Investor Relations Rosemary.firstname.lastname@example.org (970) 506-8192
Pilgrim's Pride Reports Strong Revenue Growth and Increase of 39% in Net Income for First Quarter 2013
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