Tyson Foods, Inc. (NYSE:TSN), one of the world’s largest food
companies and a recognized leader in protein with leading brands
including Tyson®, Jimmy Dean®, Hillshire Farm®, Ball Park®,
Wright®, Aidells®, ibp® and State Fair®, today reported the
following results:
|
|
|
|
(in millions, except
per share data) |
Second Quarter |
|
Six Months Ended |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
Sales |
$ |
9,773 |
|
|
$ |
9,083 |
|
|
$ |
20,002 |
|
|
$ |
18,265 |
|
Operating Income |
498 |
|
|
571 |
|
|
1,425 |
|
|
1,553 |
|
|
|
|
|
|
|
|
|
Net Income |
316 |
|
|
341 |
|
|
1,948 |
|
|
935 |
|
Less: Net Income
Attributable to Noncontrolling Interests |
1 |
|
|
1 |
|
|
2 |
|
|
2 |
|
Net Income Attributable
to Tyson |
$ |
315 |
|
|
$ |
340 |
|
|
$ |
1,946 |
|
|
$ |
933 |
|
|
|
|
|
|
|
|
|
Net Income Per Share
Attributable to Tyson |
$ |
0.85 |
|
|
$ |
0.92 |
|
|
$ |
5.25 |
|
|
$ |
2.51 |
|
|
|
|
|
|
|
|
|
Adjusted¹ Operating
Income |
$ |
694 |
|
|
$ |
623 |
|
|
$ |
1,644 |
|
|
$ |
1,605 |
|
|
|
|
|
|
|
|
|
Adjusted¹ Net Income
Per Share Attributable to Tyson |
$ |
1.27 |
|
|
$ |
1.01 |
|
|
$ |
3.08 |
|
|
$ |
2.60 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Adjusted operating income and adjusted net income per share
attributable to Tyson, or Adjusted EPS, are non-GAAP financial
measures and are explained and reconciled to a comparable GAAP
measure at the end of this release. Adjusted net income per share
attributable to Tyson guidance is provided on a non-GAAP basis
because certain information necessary to calculate such measure on
a GAAP basis is unavailable, dependent on future events outside of
our control and cannot be predicted without unreasonable efforts by
the Company. A further explanation of providing non-GAAP guidance
is included at the end of this release.
First Six Months Highlights
- Record GAAP EPS of $5.25, up 109% from last year;
Record Adjusted EPS of $3.08, up 18% from last year
- GAAP operating income of $1,425 million, down 8% from
last year; Record Adjusted operating income of $1,644 million up 2%
from last year
- Total Company GAAP operating margin of 7.1%; Adjusted
operating margin of 8.2%
- Realized $102 million of Financial Fitness Program cost
savings
Second Quarter Highlights
- GAAP EPS of $0.85, down 8% from last year; Adjusted EPS
of $1.27, up 26% from last year
- GAAP operating income of $498 million, down 13% from
last year; Adjusted operating income of $694 million, up 11% from
last year
- Realized $65 million of Financial Fitness Program cost
savings
Tax Reform Impact
- Lower enacted tax rates positively impacted the second
quarter and six months Adjusted EPS by $0.17 and $0.38,
respectively, and we expect a fiscal 2018 benefit of approximately
$0.85 on an adjusted basis
Guidance
- Including the benefit of lower enacted tax rates,
Adjusted1 EPS guidance for fiscal 2018 is $6.55-$6.70, which
represents an approximate 23-26% increase from fiscal 2017 Adjusted
EPS
"We are continuing to grow our business as we create a modern
food company focused on protein,” said Tom Hayes, president and
chief executive officer of Tyson Foods. “Sales, volume, adjusted
operating income and adjusted EPS all increased in the fiscal
second quarter vs. the same period last year. Up against
challenging conditions, we delivered solid results in all four of
our segments.
“We’ve built a strong foundation of sustainable growth that
positions us well for the second half of the fiscal year and
beyond. We’re outpacing the food and beverage industry today
- and looking ahead, we'll keep challenging the status quo and
drive growth across our iconic brands.”
SEGMENT RESULTS (in millions)
Sales |
(for the second quarter ended March 31, 2018, and
April 1, 2017) |
|
Second Quarter |
Six Months Ended |
|
|
|
Volume |
Avg. Price |
|
|
Volume |
Avg. Price |
|
2018 |
2017 |
Change |
Change |
2018 |
2017 |
Change |
Change |
Beef |
$ |
3,681 |
|
$ |
3,487 |
|
1.8 |
% |
3.7 |
% |
$ |
7,567 |
|
$ |
7,015 |
|
3.2 |
% |
4.5 |
% |
Pork |
1,265 |
|
1,302 |
|
(1.1 |
)% |
(1.8 |
)% |
2,548 |
|
2,554 |
|
(1.9 |
)% |
1.6 |
% |
Chicken |
2,959 |
|
2,798 |
|
2.0 |
% |
3.6 |
% |
5,956 |
|
5,504 |
|
4.6 |
% |
3.4 |
% |
Prepared Foods |
2,147 |
|
1,751 |
|
10.9 |
% |
10.6 |
% |
4,439 |
|
3,646 |
|
11.3 |
% |
9.4 |
% |
Other |
82 |
|
82 |
|
(7.1 |
)% |
8.9 |
% |
170 |
|
172 |
|
(5.3 |
)% |
4.7 |
% |
Intersegment Sales |
(361 |
) |
(337 |
) |
n/a |
|
n/a |
|
(678 |
) |
(626 |
) |
n/a |
|
n/a |
|
Total |
$ |
9,773 |
|
$ |
9,083 |
|
1.9 |
% |
5.6 |
% |
$ |
20,002 |
|
$ |
18,265 |
|
3.5 |
% |
5.8 |
% |
Operating Income (Loss) |
(for the second quarter ended March 31, 2018, and
April 1, 2017) |
|
Second Quarter |
Six Months Ended |
|
|
|
Operating Margin |
|
|
Operating Margin |
|
2018 |
2017 |
2018 |
2017 |
2018 |
2017 |
2018 |
2017 |
Beef |
$ |
92 |
|
$ |
126 |
|
2.5 |
% |
3.6 |
% |
$ |
348 |
|
$ |
425 |
|
4.6 |
% |
6.1 |
% |
Pork |
67 |
|
141 |
|
5.3 |
% |
10.8 |
% |
218 |
|
388 |
|
8.6 |
% |
15.2 |
% |
Chicken |
231 |
|
233 |
|
7.8 |
% |
8.3 |
% |
503 |
|
496 |
|
8.4 |
% |
9.0 |
% |
Prepared Foods |
123 |
|
87 |
|
5.7 |
% |
5.0 |
% |
384 |
|
277 |
|
8.7 |
% |
7.6 |
% |
Other |
(15 |
) |
(16 |
) |
n/a |
|
n/a |
|
(28 |
) |
(33 |
) |
n/a |
|
n/a |
|
Total |
$ |
498 |
|
$ |
571 |
|
5.1 |
% |
6.3 |
% |
$ |
1,425 |
|
$ |
1,553 |
|
7.1 |
% |
8.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: On June 7, 2017, we acquired and consolidated
AdvancePierre Foods Holdings, Inc. ("AdvancePierre"), a producer
and distributor of value-added, convenient, ready-to-eat
sandwiches, sandwich components and other entrées and snacks.
AdvancePierre's results from operations subsequent to the
acquisition closing are included in the Prepared Foods and Chicken
segments.
Adjusted Segment Results (in millions)
Adjusted Operating Income (Loss)
(Non-GAAP) |
(for the second quarter ended March 31, 2018, and
April 1, 2017) |
|
Second Quarter |
Six Months Ended |
|
|
|
Adjusted Operating Margin
(Non-GAAP) |
|
|
Adjusted Operating Margin
(Non-GAAP) |
|
2018 |
2017 |
2018 |
2017 |
2018 |
2017 |
2018 |
2017 |
Beef |
$ |
120 |
|
$ |
126 |
|
3.3 |
% |
3.6 |
% |
$ |
377 |
|
$ |
425 |
|
5.0 |
% |
6.1 |
% |
Pork |
79 |
|
141 |
|
6.2 |
% |
10.8 |
% |
231 |
|
388 |
|
9.1 |
% |
15.2 |
% |
Chicken |
288 |
|
233 |
|
9.7 |
% |
8.3 |
% |
569 |
|
496 |
|
9.6 |
% |
9.0 |
% |
Prepared Foods |
222 |
|
139 |
|
10.3 |
% |
7.9 |
% |
495 |
|
329 |
|
11.2 |
% |
9.0 |
% |
Other |
(15 |
) |
(16 |
) |
n/a |
|
n/a |
|
(28 |
) |
(33 |
) |
n/a |
|
n/a |
|
Total |
$ |
694 |
|
$ |
623 |
|
7.1 |
% |
6.9 |
% |
$ |
1,644 |
|
$ |
1,605 |
|
8.2 |
% |
8.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Adjusted operating income is a non-GAAP financial measure
and is explained and reconciled to a comparable GAAP measure at the
end of this release.
Adjusted operating income and adjusted operating margin are
presented as supplementary measures in the evaluation of our
business that are not required by, or presented in accordance with,
GAAP. We use adjusted operating income and adjusted operating
margin as internal performance measurements and as two criteria for
evaluating our performance relative to that of our peers. We
believe adjusted operating income and adjusted operating margin are
meaningful to our investors to enhance their understanding of our
financial performance and are frequently used by securities
analysts, investors and other interested parties to compare our
performance with the performance of other companies that report
adjusted operating income and adjusted operating margin. Further,
we believe that adjusted operating income and adjusted operating
margin are useful measures because they improve comparability of
results of operations from period to period. Adjusted operating
income and adjusted operating margin should not be considered as
substitutes for operating income, operating margin or any other
measure of operating performance reported in accordance with GAAP.
Investors should rely primarily on our GAAP results and use
non-GAAP financial measures only supplementally in making
investment decisions. Our calculation of adjusted operating income
and adjusted operating margin may not be comparable to similarly
titled measures reported by other companies.
Summary of Segment Results
- Beef - Sales volume increased for the six months and second
quarter of fiscal 2018 due to improved availability of cattle
supply, stronger demand for our beef products and increased
exports. Average sales price increased for the six months and
second quarter of fiscal 2018 as demand for our beef products and
strong exports outpaced the increase in live cattle supplies.
Operating income for the six months and second quarter of fiscal
2018 remained strong, although below prior year's record results,
as we continued to maximize our revenues relative to the higher
live fed cattle costs, partially offset by increased labor and
freight costs and one-time cash bonus to frontline employees of $27
million incurred in the second quarter of fiscal 2018.
- Pork - Sales volume decreased for the six months and second
quarter of fiscal 2018 as a result of balancing our supply with
customer demand during a period of margin compression. Average
sales price increased for the six months of fiscal 2018 due to
price increases in the first quarter of fiscal 2018 associated with
higher livestock costs. In the second quarter of fiscal 2018,
average sales price decreased as livestock costs fell. While
reduced compared to the prior year record results, operating income
for the six months and second quarter of fiscal 2018 remained
strong as we maximized our revenues relative to the live hog
markets due to operational and mix performance, which were
partially offset by margin compression, higher labor and freight
costs and one-time cash bonus to frontline employees of $12 million
incurred in the second quarter of fiscal 2018.
- Chicken - Sales volume was up for the six months and second
quarter of fiscal 2018 due to strong demand for our chicken
products along with the incremental volume from the AdvancePierre
acquisition. Average sales price increased for the six months and
second quarter of fiscal 2018 due to sales mix changes. Operating
income remained strong for the six months and second quarter of
fiscal 2018 as we benefited from $37 million and $23 million,
respectively, of Financial Fitness Program cost savings, in
addition to positive impacts from incremental AdvancePierre results
and slightly lower feed costs, partially offset by increased labor,
freight and growout expenses and one-time cash bonus to frontline
employees of $51 million incurred in the second quarter of fiscal
2018.
- Prepared Foods - Sales volume increased for the six months and
second quarter of fiscal 2018 primarily from incremental volume
from the AdvancePierre acquisition. Average sales price increased
for the six months and second quarter from higher input costs of
$90 million and $45 million, respectively, and product mix which
was positively impacted by the acquisition of AdvancePierre.
Operating income increased for the six months and second quarter of
fiscal 2018 due to $62 million and $38 million, respectively, of
Financial Fitness Program cost savings, in addition to positive
impacts from improved mix and incremental AdvancePierre results,
partially offset by higher input and freight costs and one-time
cash bonus to frontline employees of $19 million incurred in the
second quarter of fiscal 2018. Additionally, operating income was
impacted in the second quarter of fiscal 2018 by a $75 million
impairment related to the divestiture of non-protein business and
was impacted in the second quarter of fiscal 2017 by a $52 million
impairment of our San Diego Prepared Foods operation.
OutlookIn fiscal 2018, USDA indicates domestic
protein production (beef, pork, chicken and turkey) should increase
approximately 3% from fiscal 2017 levels, but strong export markets
should partially absorb the increase. As previously announced, in
the fourth quarter of fiscal 2017, our Board of Directors approved
a multi-year restructuring program (the “Financial Fitness
Program”), that is expected to contribute to the Company’s overall
strategy of financial fitness through increased operational
effectiveness and overhead reduction. Through a combination of
synergies from the integration of AdvancePierre and additional
elimination of non-value added costs, the program is estimated to
result in net savings of $200 million in fiscal 2018, $400 million
in fiscal 2019 including new savings of $200 million, and $600
million in fiscal 2020 including additional savings of $200
million. The majority of these savings, which are focused on supply
chain, procurement, and overhead improvements, are expected to be
realized in the Prepared Foods and Chicken segments. The
following is a summary of the outlook for each of our segments, as
well as an outlook for sales, capital expenditures, net interest
expense, liquidity, tax rate impact due to tax reform and share
repurchases for fiscal 2018.
Adjusted operating margin guidance is provided below on a
non-GAAP basis. The Company is not able to reconcile its full-year
fiscal 2018 adjusted operating margin guidance to its full-year
fiscal 2018 projected GAAP operating margin guidance because
certain information necessary to calculate such measure on a GAAP
basis is unavailable or dependent on the timing of future events
outside of our control. Therefore, because of the uncertainty and
variability of the nature of the amount of future adjustments,
which could be significant, the Company is unable to provide a
reconciliation of this measure without unreasonable effort.
Adjusted operating margin should not be considered a substitute for
operating margin or any other measure of financial performance
reported in accordance with GAAP. Investors should rely primarily
on the Company’s GAAP results and use non-GAAP financial measures
only supplementally in making investment decisions.
- Sale of Non-Protein Businesses – On April 24, 2017, we
announced our intent to sell three non-protein businesses, Sara
Lee® Frozen Bakery, Kettle and Van’s®. Additionally, in the first
quarter of fiscal 2018, we made the decision to sell our pizza
crust business. All of these non-protein businesses are part of our
Prepared Foods segment and are being sold as part of our strategic
focus on protein brands. We completed the sale of our Kettle
business in the first quarter of fiscal 2018 and used the proceeds
of $125 million to pay down debt. We anticipate we will close the
remaining transactions in the back half of fiscal 2018.
- Beef – We expect industry fed cattle supplies to increase
approximately 3% in fiscal 2018 as compared to fiscal 2017. We
expect ample supplies in regions where we operate our plants. We
believe our Beef segment's adjusted operating margin in fiscal 2018
should be above 6%.
- Pork – We expect industry hog supplies to increase
approximately 2-3% in fiscal 2018 as compared to fiscal 2017. For
fiscal 2018, our Pork segment's adjusted operating margin should be
around 8%.
- Chicken – AdvancePierre contributed approximately $165 million
of revenue in the first six months of fiscal 2018, and we expect
incremental revenue of approximately $220 million in fiscal 2018
for a total of approximately $320 million in the first full fiscal
year as part of our operation. We expect to capture Financial
Fitness Program net savings of approximately $75 million in fiscal
2018, which is a combination of AdvancePierre net synergies and
reduction of non-value added costs. USDA projects an increase in
chicken production of approximately 2% in fiscal 2018 as compared
to fiscal 2017. Based on current futures prices, we expect an
increase of approximately $100 million in feed costs in fiscal 2018
compared to fiscal 2017. For fiscal 2018, we believe our Chicken
segment sales volume will grow approximately 3-4%, and adjusted
operating margins should be similar to fiscal 2017 at around
10%.
- Prepared Foods – AdvancePierre contributed approximately $655
million of revenue in the first six months of fiscal 2018, and we
expect incremental revenue of approximately $875 million in fiscal
2018 for a total of approximately $1.3 billion in the first full
fiscal year as part of our operation. We expect to capture
Financial Fitness Program net savings in excess of $125 million in
fiscal 2018, which is a combination of AdvancePierre net synergies
and reduction of non-value added costs. We currently expect raw
material costs to be approximately $30 million higher for fiscal
2018 as compared to fiscal 2017. For fiscal 2018, we expect our
Prepared Foods segment sales to grow and adjusted operating margin
should be around 11%.
- Other – Other includes our foreign operations related to
raising and processing live chickens in China and India,
third-party merger and integration costs and corporate overhead
related to Tyson New Ventures, LLC. We expect Other operating loss
should be approximately $50 million in fiscal 2018, excluding the
impact of merger and integration expense from the acquisition of
AdvancePierre and restructuring and related costs.
- Sales – We expect fiscal 2018 sales to grow approximately 6% to
between $40-$41 billion which is attributed to incremental
AdvancePierre sales of $1.1 billion, an increase in sales volume in
our legacy businesses and an improvement in mix predominantly in
our Chicken segment.
- Capital Expenditures – We expect capital expenditures to
approximate $1.3 billion for fiscal 2018. Capital expenditures will
include spending for production growth, safety, animal well-being,
infrastructure replacements and upgrades, and operational
improvements that will result in production and labor efficiencies,
yield improvements and sales channel flexibility.
- Net Interest Expense – We expect net interest expense to
approximate $340 million for fiscal 2018, which includes estimates
regarding the timing and net proceeds from the divestitures of our
Sara Lee® Frozen Bakery, Van’s® and pizza crust businesses as we
intend to use the net sales proceeds to pay down debt.
- Liquidity – We expect total liquidity of $1.0 billion or more
while total liquidity at March 31, 2018 was slightly below $1.0
billion.
- Tax Rate – On December 22, 2017, the President of the United
States signed into law the Tax Cuts and Jobs Act. While we continue
to assess the impact of this legislation on our business and
consolidated financial statements, the legislation reduced the U.S.
corporate tax rate from the current rate of 35% to 21%. We expect
our adjusted effective tax rate to approximate 24% in fiscal 2018
and 25% in fiscal 2019.
- Share Repurchases – We will resume share repurchases, other
than to offset dilution from our equity compensation programs, once
our leverage nears our net debt to EBITDA target of 2X, which we
anticipate will occur during fiscal 2018.
TYSON FOODS,
INC.CONSOLIDATED CONDENSED STATEMENTS OF
INCOME(In millions, except per share
data)(Unaudited)
|
|
|
|
|
Three Months Ended |
|
Six Months Ended |
|
March 31, 2018 |
|
April 1, 2017 |
|
March 31, 2018 |
|
April 1, 2017 |
Sales |
$ |
9,773 |
|
|
$ |
9,083 |
|
|
$ |
20,002 |
|
|
$ |
18,265 |
|
Cost of Sales |
8,753 |
|
|
8,036 |
|
|
17,531 |
|
|
15,735 |
|
Gross Profit |
1,020 |
|
|
1,047 |
|
|
2,471 |
|
|
2,530 |
|
|
|
|
|
|
|
|
|
Selling, General and
Administrative |
522 |
|
|
476 |
|
|
1,046 |
|
|
977 |
|
Operating Income |
498 |
|
|
571 |
|
|
1,425 |
|
|
1,553 |
|
Other (Income)
Expense: |
|
|
|
|
|
|
|
Interest
income |
(2 |
) |
|
(1 |
) |
|
(4 |
) |
|
(3 |
) |
Interest
expense |
86 |
|
|
56 |
|
|
174 |
|
|
114 |
|
Other,
net |
(9 |
) |
|
(3 |
) |
|
(10 |
) |
|
11 |
|
Total Other (Income)
Expense |
75 |
|
|
52 |
|
|
160 |
|
|
122 |
|
Income before Income
Taxes |
423 |
|
|
519 |
|
|
1,265 |
|
|
1,431 |
|
Income Tax Expense
(Benefit) |
107 |
|
|
178 |
|
|
(683 |
) |
|
496 |
|
Net Income |
316 |
|
|
341 |
|
|
1,948 |
|
|
935 |
|
Less: Net Income
Attributable to Noncontrolling Interests |
1 |
|
|
1 |
|
|
2 |
|
|
2 |
|
Net Income Attributable
to Tyson |
$ |
315 |
|
|
$ |
340 |
|
|
$ |
1,946 |
|
|
$ |
933 |
|
Weighted Average Shares
Outstanding: |
|
|
|
|
|
|
|
Class A
Basic |
296 |
|
|
295 |
|
|
296 |
|
|
296 |
|
Class B
Basic |
70 |
|
|
70 |
|
|
70 |
|
|
70 |
|
Diluted |
370 |
|
|
370 |
|
|
371 |
|
|
371 |
|
Net Income Per Share
Attributable to Tyson: |
|
|
|
|
|
|
|
Class A
Basic |
$ |
0.88 |
|
|
$ |
0.95 |
|
|
$ |
5.42 |
|
|
$ |
2.59 |
|
Class B
Basic |
$ |
0.78 |
|
|
$ |
0.86 |
|
|
$ |
4.87 |
|
|
$ |
2.35 |
|
Diluted |
$ |
0.85 |
|
|
$ |
0.92 |
|
|
$ |
5.25 |
|
|
$ |
2.51 |
|
Dividends Declared Per
Share: |
|
|
|
|
|
|
|
Class
A |
$ |
0.300 |
|
|
$ |
0.225 |
|
|
$ |
0.675 |
|
|
$ |
0.525 |
|
Class
B |
$ |
0.270 |
|
|
$ |
0.203 |
|
|
$ |
0.608 |
|
|
$ |
0.473 |
|
|
|
|
|
|
|
|
|
Sales Growth |
7.6 |
% |
|
|
|
9.5 |
% |
|
|
Margins: (Percent of
Sales) |
|
|
|
|
|
|
|
Gross
Profit |
10.4 |
% |
|
11.5 |
% |
|
12.4 |
% |
|
13.9 |
% |
Operating
Income |
5.1 |
% |
|
6.3 |
% |
|
7.1 |
% |
|
8.5 |
% |
Net
Income Attributable to Tyson |
3.2 |
% |
|
3.7 |
% |
|
9.7 |
% |
|
5.1 |
% |
Effective Tax Rate |
25.3 |
% |
|
34.3 |
% |
|
-54.0 |
% |
|
34.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
TYSON FOODS,
INC.CONSOLIDATED CONDENSED BALANCE
SHEETS(In
millions)(Unaudited)
|
|
|
|
|
March 31, 2018 |
|
September 30, 2017 |
Assets |
|
|
|
Current Assets: |
|
|
|
Cash and
cash equivalents |
$ |
198 |
|
|
$ |
318 |
|
Accounts
receivable, net |
1,594 |
|
|
1,675 |
|
Inventories |
3,328 |
|
|
3,239 |
|
Other
current assets |
228 |
|
|
219 |
|
Assets
held for sale |
642 |
|
|
807 |
|
Total Current
Assets |
5,990 |
|
|
6,258 |
|
Net Property, Plant and
Equipment |
5,755 |
|
|
5,568 |
|
Goodwill |
9,404 |
|
|
9,324 |
|
Intangible Assets,
net |
6,231 |
|
|
6,243 |
|
Other Assets |
711 |
|
|
673 |
|
Total Assets |
$ |
28,091 |
|
|
$ |
28,066 |
|
|
|
|
|
Liabilities and
Shareholders’ Equity |
|
|
|
Current
Liabilities: |
|
|
|
Current
debt |
$ |
1,128 |
|
|
$ |
906 |
|
Accounts
payable |
1,485 |
|
|
1,698 |
|
Other
current liabilities |
1,217 |
|
|
1,424 |
|
Liabilities held for sale |
8 |
|
|
4 |
|
Total Current
Liabilities |
3,838 |
|
|
4,032 |
|
Long-Term Debt |
8,872 |
|
|
9,297 |
|
Deferred Income
Taxes |
2,039 |
|
|
2,979 |
|
Other Liabilities |
1,186 |
|
|
1,199 |
|
|
|
|
|
Total Tyson
Shareholders’ Equity |
12,136 |
|
|
10,541 |
|
Noncontrolling
Interests |
20 |
|
|
18 |
|
Total Shareholders’
Equity |
12,156 |
|
|
10,559 |
|
|
|
|
|
Total Liabilities and
Shareholders’ Equity |
$ |
28,091 |
|
|
$ |
28,066 |
|
|
|
|
|
|
|
|
|
TYSON FOODS,
INC.CONSOLIDATED CONDENSED STATEMENTS OF CASH
FLOWS(In
millions)(Unaudited)
|
Six Months Ended |
|
March 31, 2018 |
|
April 1, 2017 |
Cash Flows From
Operating Activities: |
|
|
|
Net
income |
$ |
1,948 |
|
|
$ |
935 |
|
Depreciation and amortization |
459 |
|
|
356 |
|
Deferred
income taxes |
(938 |
) |
|
(28 |
) |
Other,
net |
132 |
|
|
88 |
|
Net
changes in operating assets and liabilities |
(462 |
) |
|
(369 |
) |
Cash Provided by
Operating Activities |
1,139 |
|
|
982 |
|
|
|
|
|
Cash Flows From
Investing Activities: |
|
|
|
Additions
to property, plant and equipment |
(559 |
) |
|
(467 |
) |
Purchases
of marketable securities |
(22 |
) |
|
(30 |
) |
Proceeds
from sale of marketable securities |
21 |
|
|
29 |
|
Acquisition, net of cash acquired |
(226 |
) |
|
— |
|
Proceeds
from sale of business |
125 |
|
|
— |
|
Other,
net |
(25 |
) |
|
(10 |
) |
Cash Used for Investing
Activities |
(686 |
) |
|
(478 |
) |
|
|
|
|
Cash Flows From
Financing Activities: |
|
|
|
Payments
on debt |
(432 |
) |
|
(45 |
) |
Borrowings on revolving credit facility |
1,420 |
|
|
1,680 |
|
Payments
on revolving credit facility |
(1,420 |
) |
|
(1,977 |
) |
Proceeds
from issuance of commercial paper |
10,837 |
|
|
725 |
|
Repayments of commercial paper |
(10,615 |
) |
|
(225 |
) |
Purchases
of Tyson Class A common stock |
(237 |
) |
|
(733 |
) |
Dividends |
(216 |
) |
|
(158 |
) |
Stock
options exercised |
87 |
|
|
83 |
|
Other,
net |
— |
|
|
41 |
|
Cash Used for Financing
Activities |
(576 |
) |
|
(609 |
) |
Effect of Exchange Rate
Changes on Cash |
3 |
|
|
(1 |
) |
Decrease in Cash and
Cash Equivalents |
(120 |
) |
|
(106 |
) |
Cash and Cash
Equivalents at Beginning of Year |
318 |
|
|
349 |
|
Cash and Cash
Equivalents at End of Period |
$ |
198 |
|
|
$ |
243 |
|
|
|
|
|
|
|
|
|
TYSON FOODS, INC.EBITDA
Reconciliations(In
millions)(Unaudited)
|
|
|
|
|
|
Six Months Ended |
|
Fiscal Year Ended |
Twelve Months Ended |
|
March 31, 2018 |
|
April 1, 2017 |
|
September 30, 2017 |
March 31, 2018 |
|
|
|
|
|
|
|
Net income |
$ |
1,948 |
|
|
$ |
935 |
|
|
$ |
1,778 |
|
$ |
2,791 |
|
Less: Interest
income |
(4 |
) |
|
(3 |
) |
|
(7 |
) |
(8 |
) |
Add: Interest
expense |
174 |
|
|
114 |
|
|
279 |
|
339 |
|
Add: Income tax expense
(benefit) |
(683 |
) |
|
496 |
|
|
850 |
|
(329 |
) |
Add: Depreciation |
353 |
|
|
314 |
|
|
642 |
|
681 |
|
Add: Amortization
(a) |
101 |
|
|
38 |
|
|
106 |
|
169 |
|
EBITDA |
$ |
1,889 |
|
|
$ |
1,894 |
|
|
$ |
3,648 |
|
$ |
3,643 |
|
|
|
|
|
|
|
|
Adjustments to
EBITDA: |
|
|
|
|
|
|
Add: One-time cash
bonus to frontline employees |
$ |
109 |
|
|
$ |
— |
|
|
$ |
— |
|
$ |
109 |
|
Add: AdvancePierre
purchase accounting and acquisition related costs (b) |
— |
|
|
— |
|
|
103 |
|
103 |
|
Add: Impairments net of
realized gain associated with the divestiture of non-protein
businesses (c) |
79 |
|
|
— |
|
|
45 |
|
124 |
|
Add: Restructuring and
related charges |
31 |
|
|
— |
|
|
150 |
|
181 |
|
Add: San Diego Prepared
Foods operation impairment |
— |
|
|
52 |
|
|
52 |
|
52 |
|
Total Adjusted
EBITDA |
$ |
2,108 |
|
|
$ |
1,946 |
|
|
$ |
3,998 |
|
$ |
4,212 |
|
|
|
|
|
|
|
|
Pro forma Adjustments
to EBITDA: |
|
|
|
|
|
|
Add: AdvancePierre
adjusted EBITDA (prior to acquisition) (d) |
|
|
|
|
$ |
193 |
|
$ |
48 |
|
Total Pro forma
adjusted EBITDA |
|
|
|
|
$ |
4,191 |
|
$ |
4,260 |
|
|
|
|
|
|
|
|
Total gross debt |
|
|
|
|
$ |
10,203 |
|
$ |
10,000 |
|
Less: Cash and cash
equivalents |
|
|
|
|
(318 |
) |
(198 |
) |
Less: Short-term
investments |
|
|
|
|
(3 |
) |
(2 |
) |
Total net debt |
|
|
|
|
$ |
9,882 |
|
$ |
9,800 |
|
|
|
|
|
|
|
|
Ratio
Calculations: |
|
|
|
|
|
|
Gross debt/EBITDA |
|
|
|
|
2.8x |
2.7x |
Net debt/EBITDA |
|
|
|
|
2.7x |
2.7x |
|
|
|
|
|
|
|
Gross debt/Adjusted
EBITDA |
|
|
|
|
2.6x |
2.4x |
Net debt/Adjusted
EBITDA |
|
|
|
|
2.5x |
2.3x |
|
|
|
|
|
|
|
Gross debt/Pro forma
Adjusted EBITDA |
|
|
|
|
2.4x |
2.3x |
Net debt/Pro forma
Adjusted EBITDA |
|
|
|
|
2.4x |
2.3x |
|
|
|
|
|
|
|
- Excludes the amortization of debt issuance and debt discount
expense of $5 million and $4 million for the six months ended March
31, 2018, and April 1, 2017, respectively, $13 million for the
fiscal year ended September 30, 2017, and $14 million for the
twelve months ended March 31, 2018, as it is included in interest
expense.
- AdvancePierre acquisition and integration costs for the fiscal
year 2017 and twelve months ending March 31, 2018, includes $36
million of purchase accounting adjustments, $49 million acquisition
related costs and $18 million of acquisition bridge financing
fees.
- For the fiscal year ended September 30, 2017, includes an
impairment related to the expected sale of a non-protein business
of $45 million in fiscal 2017. The adjustment for the six months
ended March 31, 2018 includes $101 million impairments related to
the expected sale of a non-protein business net of a $22 million
realized pretax gain associated with the sale of a non-protein
business. For the twelve months ended March 31, 2018 includes
impairments related to the expected sale of non-protein businesses
of $146 million net of $22 million realized pretax gain from the
sale of a non-protein business.
- Represents AdvancePierre's pre-acquisition Adjusted EBITDA, for
the approximate eight and two months ended prior to the June 7,
2017, closing of the acquisition. These amounts are added to our
Adjusted EBITDA for the fiscal year ended September 30, 2017 and
the twelve months ended March 31, 2018, in order for Net debt to
Adjusted EBITDA to include a full twelve months of AdvancePierre
results on a pro forma basis for each of the periods presented. The
pro forma adjusted EBITDA was derived from AdvancePierre’s EBITDA
from its historical unaudited financial statements for the three
months ended December 31, 2016, and April 1, 2017, as filed with
the Securities and Exchange Commission, as well as AdvancePierre
management unaudited financial information for the period from
April 2, 2017, through the June 7, 2017, closing of the
acquisition. These amounts were adjusted to remove the impact of
its merger, acquisition and public filing expenses as well as
related expenses including consultant fees, accelerated stock-based
compensation and other deal costs. We believe this pro forma
presentation is useful and helps management, investors, and rating
agencies enhance their understanding of our financial performance
and to better highlight future financial trends on a comparable
basis with AdvancePierre results included for the periods presented
given the significance of the acquisition to our overall
results.
EBITDA is defined as net income before interest, income taxes,
depreciation and amortization. Net debt to EBITDA (Adjusted EBITDA
and Pro forma Adjusted EBITDA) represents the ratio of our debt,
net of cash and short-term investments, to EBITDA (and to Adjusted
EBITDA and Pro forma Adjusted EBITDA). EBITDA, Adjusted EBITDA, net
debt to EBITDA and net debt to Adjusted EBITDA (and to Pro forma
Adjusted EBITDA) are presented as supplemental financial
measurements in the evaluation of our business. Adjusted EBITDA is
a tool intended to assist our management and investors in comparing
our performance on a consistent basis for purposes of business
decision-making by removing the impact of certain items that
management believes do not directly reflect our core operations on
an ongoing basis.
We believe the presentation of these financial measures helps
management and investors to assess our operating performance from
period to period, including our ability to generate earnings
sufficient to service our debt, enhances understanding of our
financial performance and highlights operational trends. These
measures are widely used by investors and rating agencies in the
valuation, comparison, rating and investment recommendations of
companies; however, the measurements of EBITDA (and Adjusted EBITDA
and Pro forma Adjusted EBITDA) and net debt to EBITDA (and to
Adjusted EBITDA and Pro forma Adjusted EBITDA) may not be
comparable to those of other companies, which limits their
usefulness as comparative measures. EBITDA (and Adjusted EBITDA and
Pro forma Adjusted EBITDA) and net debt to EBITDA (and to Adjusted
EBITDA and Pro forma Adjusted EBITDA) are not measures required by
or calculated in accordance with generally accepted accounting
principles (GAAP) and should not be considered as substitutes for
net income or any other measure of financial performance reported
in accordance with GAAP or as a measure of operating cash flow or
liquidity. EBITDA (and Adjusted EBITDA and Pro forma Adjusted
EBITDA) is a useful tool for assessing, but is not a reliable
indicator of, our ability to generate cash to service our debt
obligations because certain of the items added to net income to
determine EBITDA (and Adjusted EBITDA and Pro forma Adjusted
EBITDA) involve outlays of cash. As a result, actual cash available
to service our debt obligations will be different from EBITDA (and
Adjusted EBITDA and Pro forma Adjusted EBITDA). Investors should
rely primarily on our GAAP results and use non-GAAP financial
measures only supplementally in making investment decisions.
TYSON FOODS, INC.EPS
Reconciliations(In millions, except per share
data)(Unaudited)
|
|
|
|
|
Second Quarter |
|
Six Months Ended |
|
Pretax Impact |
|
EPS Impact |
|
Pretax Impact |
|
EPS Impact |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported net income per
share attributable to Tyson |
|
|
|
|
$ |
0.85 |
|
|
$ |
0.92 |
|
|
|
|
|
|
$ |
5.25 |
|
|
$ |
2.51 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add: One-time cash
bonus to frontline employees |
$ |
109 |
|
|
$ |
— |
|
|
0.22 |
|
|
— |
|
|
$ |
109 |
|
|
$ |
— |
|
|
0.22 |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add: Restructuring and
related charges |
$ |
12 |
|
|
$ |
— |
|
|
0.02 |
|
|
— |
|
|
$ |
31 |
|
|
$ |
— |
|
|
0.06 |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add: Impairment net of
a realized gain associated with the divestiture of non-protein
businesses (a) |
$ |
75 |
|
|
$ |
— |
|
|
0.21 |
|
|
— |
|
|
$ |
79 |
|
|
$ |
— |
|
|
0.26 |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Add: San Diego Prepared
Foods operation impairment |
$ |
— |
|
|
$ |
52 |
|
|
— |
|
|
0.09 |
|
|
$ |
— |
|
|
$ |
52 |
|
|
— |
|
|
0.09 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less: Tax benefit from
remeasurement of net deferred tax liabilities at lower enacted tax
rates |
$ |
— |
|
|
$ |
— |
|
|
(0.03 |
) |
|
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
(2.71 |
) |
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income per
share attributable to Tyson |
|
|
|
|
$ |
1.27 |
|
|
$ |
1.01 |
|
|
|
|
|
|
$ |
3.08 |
|
|
$ |
2.60 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) EPS impact for the six months of fiscal 2018 includes $101
million of impairments related to the expected sale of a
non-protein business net of a $22 million realized pretax gain
associated with the sale of a non-protein business, which combined
on an after-tax basis resulted in a $0.26 impact to EPS.
Adjusted net income per share attributable to Tyson (Adjusted
EPS) is presented as a supplementary measure of our financial
performance that is not required by, or presented in accordance
with, GAAP. We use Adjusted EPS as an internal performance
measurement and as one criterion for evaluating our performance
relative to that of our peers. We believe Adjusted EPS is
meaningful to our investors to enhance their understanding of our
financial performance and is frequently used by securities
analysts, investors and other interested parties to compare our
performance with the performance of other companies that report
Adjusted EPS. Further, we believe that Adjusted EPS is a useful
measure because it improves comparability of results of operations
from period to period. Adjusted EPS should not be considered a
substitute for net income per share attributable to Tyson or any
other measure of financial performance reported in accordance with
GAAP. Investors should rely primarily on our GAAP results and use
non-GAAP financial measures only supplementally in making
investment decisions. Our calculation of Adjusted EPS may not be
comparable to similarly titled measures reported by other
companies.
Adjusted EPS guidance is provided on a non-GAAP basis. The
Company is not able to reconcile its full-year fiscal 2018 Adjusted
EPS guidance to its full-year fiscal 2018 projected GAAP EPS
guidance because certain information necessary to calculate such
measure on a GAAP basis is unavailable or dependent on the timing
of future events outside of our control. Therefore, because of the
uncertainty and variability of the nature of the amount of future
adjustments, which could be significant, the Company is unable to
provide a reconciliation of this measure without unreasonable
effort.
TYSON FOODS,
INC.Operating Income
Reconciliation(In
millions)(Unaudited)
Adjusted Operating Income (Loss) |
(for the Second quarter ended March 31, 2018) |
|
Beef |
Pork |
Chicken |
Prepared Foods |
Other |
Total |
Reported operating
income (loss) |
$ |
92 |
|
$ |
67 |
|
$ |
231 |
|
$ |
123 |
|
$ |
(15 |
) |
$ |
498 |
|
Add: One-time cash bonus to frontline employees |
27 |
|
12 |
|
51 |
|
19 |
|
— |
|
109 |
|
Add: Restructuring and related charges |
1 |
|
— |
|
6 |
|
5 |
|
— |
|
12 |
|
Add: Impairment
associated with the divestiture of a non-protein business |
— |
|
— |
|
— |
|
75 |
|
— |
|
75 |
|
Adjusted operating
income (loss) |
$ |
120 |
|
$ |
79 |
|
$ |
288 |
|
$ |
222 |
|
$ |
(15 |
) |
$ |
694 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Operating Income (Loss) |
(for the Second quarter ended April 1, 2017) |
|
Beef |
Pork |
Chicken |
Prepared Foods |
Other |
Total |
Reported operating
income (loss) |
$ |
126 |
|
$ |
141 |
|
$ |
233 |
|
$ |
87 |
|
$ |
(16 |
) |
$ |
571 |
|
Add: San Diego Prepared Foods operation impairment |
— |
|
— |
|
— |
|
52 |
|
— |
|
52 |
|
Adjusted operating
income (loss) |
$ |
126 |
|
$ |
141 |
|
$ |
233 |
|
$ |
139 |
|
$ |
(16 |
) |
$ |
623 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Operating Income (Loss) |
(for the Six months ended March 31, 2018) |
|
Beef |
Pork |
Chicken |
Prepared Foods |
Other |
Total |
Reported operating
income (loss) |
$ |
348 |
|
$ |
218 |
|
$ |
503 |
|
$ |
384 |
|
$ |
(28 |
) |
$ |
1,425 |
|
Add: One-time cash bonus to frontline employees |
27 |
|
12 |
|
51 |
|
19 |
|
— |
|
109 |
|
Add: Restructuring and related charges |
2 |
|
1 |
|
15 |
|
13 |
|
— |
|
31 |
|
Add: Impairment net of
a realized gain associated with the divestiture of non-protein
businesses (a) |
— |
|
— |
|
— |
|
79 |
|
— |
|
79 |
|
Adjusted operating
income (loss) |
$ |
377 |
|
$ |
231 |
|
$ |
569 |
|
$ |
495 |
|
$ |
(28 |
) |
$ |
1,644 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) Operating income impact for the six months of fiscal 2018
includes $101 million of impairments related to the expected sale
of a non-protein business net of a $22 million realized pretax gain
associated with the sale of a non-protein business.
|
Adjusted Operating Income (Loss) |
(for the Six months ended April 1, 2017) |
|
Beef |
Pork |
Chicken |
Prepared Foods |
Other |
Total |
Reported operating
income (loss) |
$ |
425 |
|
$ |
388 |
|
$ |
496 |
|
$ |
277 |
|
$ |
(33 |
) |
$ |
1,553 |
|
Add: San Diego Prepared Foods operation impairment |
— |
|
— |
|
— |
|
52 |
|
— |
|
52 |
|
Adjusted operating
income (loss) |
$ |
425 |
|
$ |
388 |
|
$ |
496 |
|
$ |
329 |
|
$ |
(33 |
) |
$ |
1,605 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted operating income is presented as a supplementary
measure of our operating performance that is not required by, or
presented in accordance with, GAAP. We use adjusted operating
income as an internal performance measurement and as one criterion
for evaluating our performance relative to that of our peers. We
believe adjusted operating income is meaningful to our investors to
enhance their understanding of our operating performance and is
frequently used by securities analysts, investors and other
interested parties to compare our performance with the performance
of other companies that report adjusted operating income. Further,
we believe that adjusted operating income is a useful measure
because it improves comparability of results of operations from
period to period. Adjusted operating income should not be
considered as a substitute for operating income or any other
measure of operating performance reported in accordance with GAAP.
Investors should rely primarily on our GAAP results and use
non-GAAP financial measures only supplementally in making
investment decisions. Our calculation of adjusted operating income
may not be comparable to similarly titled measures reported by
other companies.
Tyson Foods Inc. (NYSE:TSN) is one of the world’s largest food
companies and a recognized leader in protein. Founded in 1935 by
John W. Tyson and grown under three generations of family
leadership, the company has a broad portfolio of products and
brands like Tyson®, Jimmy Dean®, Hillshire Farm®, Ball Park®,
Wright®, Aidells®, ibp® and State Fair®. Tyson Foods innovates
continually to make protein more sustainable, tailor food for
everywhere it’s available and raise the world’s expectations for
how much good food can do. Headquartered in Springdale, Arkansas,
the company had 122,000 team members at September 30, 2017. Through
its Core Values, Tyson Foods strives to operate with integrity,
create value for its shareholders, customers, communities and team
members and serve as a steward of the animals, land and environment
entrusted to it. Visit www.tysonfoods.com.
A conference call to discuss the Company's financial results
will be held at 9 a.m. Eastern Monday, May 7, 2018. Participants
may pre-register for the call at http://dpregister.com/10119631.
Callers who pre-register will be given a conference passcode and
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. Those without internet access
or who are unable to pre-register may dial-in by calling toll free
1-844-890-1795 or international toll 1-412-717-9589.
A live webcast, including slides, will be available on the Tyson
Foods Investor Relations website at http://ir.tyson.com. The
webcast also can be accessed by using the direct link
https://event.on24.com/wcc/r/1628033/522F15434B76C9B8CC93847A78A80430.
A replay of the call will be available until June 7, 2018, toll
free at 1-877-344-7529, international toll 1-412-317-0088 or Canada
toll free 855-669-9658. The replay access code is 10119631.
Financial information, such as this news release, as well as other
supplemental data, can be accessed from the Company's web site at
http://ir.tyson.com.
To download TSN’s free investor relations app, which offers
access to SEC filings, news releases, transcripts, webcasts and
presentations, please visit the App Store
or https://itunes.apple.com/us/app/tyson-foods-investor-relations/id924277754?ls=1&mt=8
for iPhone, and iPad or Google Play for Android mobile devices at
https://play.google.com/store/apps/details?id=com.theirapp.tyson.
Forward-Looking StatementsCertain information
contained in the press release may constitute forward-looking
statements, including but not limited to statements relating to
expected performance, statements appearing in the “Outlook” section
and statements relating to adjusted EPS guidance and synergies
estimates. These forward-looking statements are subject to a number
of factors and uncertainties which could cause our actual results
and experiences to differ materially from the anticipated results
and expectations expressed in such forward-looking statements. We
wish to caution readers not to place undue reliance on any
forward-looking statements, which speak only as of the date made.
Among the factors that may cause actual results and experiences to
differ from anticipated results and expectations expressed in such
forward-looking statements are the following: (i) fluctuations in
the cost and availability of inputs and raw materials, such as live
cattle, live swine, feed grains (including corn and soybean meal)
and energy; (ii) market conditions for finished products,
including competition from other global and domestic food
processors, supply and pricing of competing products and
alternative proteins and demand for alternative proteins; (iii)
outbreak of a livestock disease (such as avian influenza (AI) or
bovine spongiform encephalopathy (BSE)), which could have an
adverse effect on livestock we own, the availability of livestock
we purchase, consumer perception of certain protein products or our
ability to access certain domestic and foreign markets; (iv) the
integration of AdvancePierre Foods Holdings, Inc.; (v) the
effectiveness of our financial fitness program; (vi) the
implementation of an enterprise resource planning system; (vii)
access to foreign markets together with foreign economic
conditions, including currency fluctuations, import/export
restrictions and foreign politics; (viii) changes in availability
and relative costs of labor and contract growers and our ability to
maintain good relationships with employees, labor unions, contract
growers and independent producers providing us livestock; (ix)
issues related to food safety, including costs resulting from
product recalls, regulatory compliance and any related claims or
litigation; (x) changes in consumer preference and diets and our
ability to identify and react to consumer trends; (xi)
effectiveness of advertising and marketing programs; (xii) our
ability to leverage brand value propositions; (xiii) risks
associated with leverage, including cost increases due to rising
interest rates or changes in debt ratings or outlook; (xiv)
impairment in the carrying value of our goodwill or indefinite life
intangible assets; (xv) compliance with and changes to regulations
and laws (both domestic and foreign), including changes in
accounting standards, tax laws, environmental laws, agricultural
laws and occupational, health and safety laws; (xvi) adverse
results from litigation; (xvii) cyber incidents, security breaches
or other disruptions of our information technology systems; (xviii)
our ability to make effective acquisitions or joint ventures and
successfully integrate newly acquired businesses into existing
operations; (xix) risks associated with our commodity purchasing
activities; (xx) the effect of, or changes in, general economic
conditions; (xxi) significant marketing plan changes by large
customers or loss of one or more large customers; (xxii) impacts on
our operations caused by factors and forces beyond our control,
such as natural disasters, fire, bioterrorism, pandemics or extreme
weather; (xxiii) failure to maximize or assert our intellectual
property rights; (xxiv) our participation in a multiemployer
pension plan; (xxv) the Tyson Limited Partnership’s ability to
exercise significant control over the Company; (xxvi) effects
related to changes in tax rates, valuation of deferred tax assets
and liabilities, or tax laws and their interpretation; (xxvii)
volatility in capital markets or interest rates; and (xxviii) those
factors listed under Item 1A. “Risk Factors” included in our Annual
Report filed on Form 10-K for the period ended September 30,
2017.
Media Contact: Gary Mickelson, 479-290-6111Investor
Contact: Jon Kathol, 479-290-4235
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