PITTSBURG, Texas, Feb. 4 /PRNewswire-FirstCall/ -- Pilgrim's Pride
Corporation (NYSE:PPC) today reported net income of $33.6 million,
or $0.44 per diluted share, on net sales of $1.6 billion for the
quarter ended December 27, 2009. These results include an income
tax benefit of $102.4 million, or $1.33 per diluted share, related
to a net operating loss carryforward, and a net charge of $32.7
million, or $0.42 per diluted share, related to the company's
reorganization. For the comparable quarter a year earlier, the
company reported a net loss of $228.8 million, or $3.09 per diluted
share, on total sales of nearly $1.9 billion. "Our financial
results have improved dramatically over the past year as we work to
create a market-driven company clearly focused on delivering the
highest levels of service, selection and value to our customers as
efficiently as possible," said Don Jackson, Pilgrim's Pride
president and chief executive officer. "While we are pleased with
the progress we have made, we recognize that there is much more
work to be done in positioning Pilgrim's Pride for sustained,
profitable growth. We will continue to focus on opportunities for
improving our product mix, expanding our customer base and
operating more efficiently." Market pricing for chicken products
during the quarter was mixed. The average market price for breast
meat rose 8 percent and for wings increased by 37 percent versus
the same period a year earlier. The average market price for leg
quarters, however, declined 10 percent and Georgia Dock dropped
about 5 percent. Pilgrim's Pride said its total U.S.
feed-ingredient costs in the quarter declined approximately $120
million, or 20 percent, when compared to the same period a year
ago. The company reported an overall operating profit of $7.6
million for the quarter, an improvement of $185.8 million from a
year earlier. Operating income was driven by higher gross profit
and a $16 million reduction - or nearly 17 percent drop - in
Selling, General and Administrative (SG&A) expenses in the
company's U.S. operations as the company continued to benefit from
expense reduction efforts during its reorganization. "Today our
business strategy is clear," said Dr. Jackson. "We are squarely
focused on being a market-driven company that produces to the needs
of our customers and the market. We have reduced our production of
commodity chicken and are targeting higher-margin products. Our
core retail and foodservice demand is driving supply. Our supply
chain is focused on optimizing production, while our operations
group is driving performance through safety, quality, productivity
and cost efficiency." On December 28, 2009, Pilgrim's Pride amended
and restated its bylaws, which, among other things, changed the
company's fiscal year end from the Saturday nearest September 30 of
each year to the last Sunday in December of each year. This change
aligns the company's reporting cycle with the fiscal calendar of
JBS USA, the majority stockholder of Pilgrim's Pride. The change
resulted in an approximate three-month transition period which
began September 27, 2009, and ended December 27, 2009. Conference
Call Information A conference call to discuss the company's
quarterly results will be held today at 10 a.m. Central (11 a.m.
Eastern). To listen live via telephone, call toll-free
877-719-9799, pass code 4464666. International callers should dial
719-325-4759. The presentation will be broadcast live over the
Internet at http://www.videonewswire.com/event.asp?id=65642.
(Please copy and paste the link into the browser.) Additionally,
the company has posted a slide presentation on its website at
http://www.pilgrimspride.com/, which may be viewed by listeners in
connection with today's conference call. The webcast will be
available for replay within approximately two hours of the
conclusion of the call. A telephone replay will be available today
beginning at approximately 1 p.m. (Central) toll-free at
888-203-1112 pass code 4464666. International callers should dial
719-457-0820. The replay will be available for 30 days. About
Pilgrim's Pride Pilgrim's Pride Corporation employs approximately
41,000 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
distributors. For more information, please visit
http://www.pilgrimspride.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 forward-looking statements. It is important to note
that the 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;
the ability of the company to achieve the anticipated synergistic
gains from the sale of 64% of its common stock to JBS USA Holdings,
Inc; future pricing for feed ingredients and the company's
products; additional 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, particularly
in light of Pilgrim's Pride's substantial leverage; restrictions
imposed by, and as a result of, Pilgrim's Pride's substantial
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 exports
into Russia, the anti-dumping proceeding in Ukraine and the
anti-dumping and countervailing duty proceeding in China; 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. Media
Contact: Ray Atkinson Director of Corporate Communications (903)
434-1811 Investor Contact: Gary Rhodes Vice President, Corporate
Communications and Investor Relations (903) 434-1495 PILGRIM'S
PRIDE CORPORATION Debtor and Debtor-in-Possession Consolidated
Statements of Operations (Unaudited) [In thousands, except share
and per share data] Three Months Ended ------------------ December
27, December 27, ------------ ------------ 2009 2008 ---- ---- (In
thousands, except per share data) Net sales $1,602,734 $1,876,991
Costs and expenses: Cost of sales 1,517,273 1,960,373 Operational
restructuring charges 2,877 - ----- --- Gross profit (loss) 82,584
(83,382) Selling, general and administrative expense 76,354 92,437
Administrative restructuring charges, net (1,359) 2,422 ------
----- Total costs and expenses 1,595,145 2,055,232 ---------
--------- Operating income (loss) 7,589 (178,241) Other expenses
(income): Interest expense 44,673 39,569 Interest income (480)
(531) Miscellaneous, net (884) (1,440) ---- ------ Total other
expenses (income) 43,309 37,598 ------ ------ Loss from continuing
operations before reorganization items and income taxes (35,720)
(215,839) Reorganization items, net 32,726 13,250 ------ ------
Loss from continuing operations before income taxes (68,446)
(229,089) Income tax expense (benefit) (102,371) 278 -------- ---
Income (loss) from continuing operations 33,925 (229,367) Income
from discontinued business, net of tax - 574 --- --- Net income
(loss) 33,925 (228,793) Less: Net income (loss) attributable to
noncontrolling interest 312 (13) --- --- Net income (loss)
attributable to Pilgrim's Pride Corporation $33,613 $(228,780)
======= ========= Net income (loss) per common share-basic: Income
(loss) from continuing operations attributable to Pilgrim's Pride
Corporation common stockholders $0.45 $(3.10) Income from
discontinued business attributable to Pilgrim's Pride Corporation
common stockholders - 0.01 --- ---- Net income (loss) attributable
to Pilgrim's Pride Corporation common stockholders $0.45 $(3.09)
==== ===== Net income (loss) per common share-diluted: Income
(loss) from continuing operations attributable to Pilgrim's Pride
Corporation common stockholders $0.44 $(3.10) Income from
discontinued business attributable to Pilgrim's Pride Corporation
common stockholders - 0.01 --- ---- Net income (loss) attributable
to Pilgrim's Pride Corporation common stockholders $0.44 $(3.09)
==== ===== Weighted average shares outstanding: Basic 74,374 74,056
Diluted 77,141 74,056 PILGRIM'S PRIDE CORPORATION Debtor and
Debtor-in-Possession Condensed Consolidated Balance Sheets
(Unaudited) [In thousands] December 27, September 26, 2009 2009
------------- -------------- ASSETS ------ Cash and cash
equivalents $236,300 $220,029 Investments in available-for-sale
securities 7,876 5,302 Other current assets 1,265,034 1,140,863
--------- --------- Total current assets 1,509,210 1,366,194 Other
assets 167,442 137,520 Investments in available-for-sale securities
58,104 57,314 Property, plant and equipment, net 1,474,707
1,499,476 --------- --------- Total assets $3,209,463 $3,060,504
========== ========== LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------ Current maturities of
long-term debt $238,072 $ - Other current liabilities 612,760
508,164 ------- ------- Total current liabilities 850,832 508,164
Long-term debt, less current maturities 1,859,400 41,062 Deferred
income taxes 66,164 22,213 Other long-term liabilities 102,051
98,783 Liabilities subject to compromise 138,208 2,233,161 Total
stockholders' equity 192,808 157,121 ------- ------- Total
liabilities and stockholders' equity $3,209,463 $3,060,504
========== ========== PILGRIM'S PRIDE CORPORATION Debtors and
Debtors-in-Possession Selected Financial Information (Unaudited)
(In thousands) 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 and reorganization items.
EBITDA is presented because it is used by us 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 ------------------ December 27, December 27,
------------ ------------ 2009 2008 ---- ---- (In thousands, except
per share data) Income (loss) from continuing operations $33,925
$(229,367) Add: Income tax expense (benefit) (102,371) 278 Interest
expense, net 44,193 39,038 Depreciation and amortization 56,705
60,158 Minus: Amortization of Capitalized Financing Costs 1,437
1,544 ----- ----- EBITDA 31,015 (131,437) Add: Restructuring
charges, net 1,518 2,422 Reorganization items, net 32,726 13,250
------ ------ Adjusted EBITDA $65,259 $(115,765) ======= =========
http://www.videonewswire.com/event.asp?id=65642DATASOURCE:
Pilgrim's Pride Corporation CONTACT: Media, Ray Atkinson, Director
of Corporate Communications, +1-903-434-1811, , or Investors, Gary
Rhodes, Vice President, Corporate Communications and Investor
Relations, +1-903-434-1495, both of Pilgrim's Pride Corporation Web
Site: http://www.pilgrimspride.com/
Copyright
