Pilgrim's Pride Corp (PPC)

[chmcnfunds]

Pilgrim's Pride Reports Results for First Quarter of Fiscal 2012

GREELEY, Colo., Apr 27, 2012 (GlobeNewswire via COMTEX) --

Pilgrim's Pride Corporation PPC +1.16% reported its first quarter 2012 results with net sales of $1.9 billion and Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA") of $101.5 million, which includes non-recurring restructuring charges of $2.9 million. Operating cash flows were a positive $29.4 million for the period. The Company recognized net income of $39.6 million during the first quarter of 2012, resulting in net income of $0.18 per diluted share. This compares to a loss of $119.9 million, or $0.54 per diluted share in the same quarter of the prior year.

"We are encouraged to see the benefits of our strategy and the improvement in our operations over the past year reflected in the best results we have had in the first calendar quarter since 2005," stated Bill Lovette, Pilgrim's Chief Executive Officer.

Mr. Lovette added that while the trend is promising, there is no room for complacency. As a company and as an industry, the shift needs to continue towards valuing the whole bird and not relying on high breast meat prices to carry the margin. Volatility in the commodity markets is now the norm and must be considered - along with cost containment -- as a standard part of production planning in order to maintain profitability long term.

"We've accomplished a lot over the past year and are clearly headed in the direction we want to be. This quarter confirms our belief -- the industry can be profitable even at varying grain price points given the right focus on discipline."

Pilgrim's financial position reflects a reduction in net debt of $211.5 million, including cash flow and the successful completion of its rights offering during the quarter.

Conference Call Information

A conference call to discuss Pilgrim's quarterly results will be held today at 6:00 a.m. Mountain (8 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/ppc120427.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 [phone] within the US or [phone] 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 July 27, 2012.

About Pilgrim's Pride

Pilgrim's employs approximately 38,500 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 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; 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 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.




PILGRIM'S PRIDE CORPORATION
Consolidated Statements of Operations
(Unaudited)


Thirteen Weeks Ended
--------------------------

March 25, March 27,
2012 2011
------------ ------------
(In thousands, except per
share data)

Net sales $ 1,888,773 $ 1,892,476
Costs and expenses:
Cost of sales 1,778,708 1,944,238
Operational restructuring
charges -- 1,348
------------ ------------

Gross profit (loss) 110,065 (53,110)

Selling, general and
administrative expense 45,256 53,248
Administrative restructuring
charges, net 2,885 418
------------ ------------

Operating income (loss) 61,924 (106,776)

Interest expense 28,245 27,507
Interest income (274) (710)
Foreign currency transaction
losses (gains) (5,928) (2,735)

Miscellaneous, net (370) (1,071)
------------ ------------

Income (loss) before
income taxes 40,251 (129,767)

Income tax expense (benefit) 653 (9,872)
------------ ------------

Net income (loss) 39,598 (119,895)
Less: Net income (loss)
attributable to
noncontrolling interests 425 865
------------ ------------

Net income (loss)
attributable to Pilgrim's
Pride Corporation $ 39,173 $ (120,760)
============ ============

Weighted average shares of
common stock outstanding:
Basic 223,562 224,996
Diluted 223,631 224,996

Net income (loss) per share
of common stock
outstanding:
Basic $ 0.18 $ (0.54)
Diluted $ 0.18 $ (0.54)

PILGRIM'S PRIDE CORPORATION
Consolidated Balance Sheets


December 25,
March 25,
2012 2011
------------ ------------
(Unaudited)
(In thousands)

Cash and cash equivalents $ 47,570 $ 41,609
Restricted cash and cash
equivalents 4,684 7,680
Investment in available-for-sale
securities 156 157
Trade accounts and other
receivables, less allowance for
doubtful accounts 350,832 349,222
Account receivable from JBS USA,
LLC 19,406 21,198
Inventories 910,430 879,094
Income taxes receivable 63,884 59,067
Prepaid expenses and other
current assets 40,588 52,350

Assets held for sale 50,220 53,816
------------ ------------

Total current assets 1,487,770 1,464,193

Investment in available-for-sale
securities 591 497
Deferred tax assets 71,099 71,099
Other long-lived assets 51,445 57,921
Identified intangible assets,
net 42,656 44,083
Property, plant and equipment,
net 1,224,880 1,241,752
------------ ------------


Total assets $ 2,878,441 $ 2,879,545
============ ============

Accounts payable $ 293,131 $ 328,864
Account payable to JBS USA, LLC 8,339 11,653
Accrued expenses and other
current liabilities 290,637 281,797
Current deferred tax liabilities 79,328 79,248
Current maturities of long-term
debt 15,614 15,611
------------ ------------

Total current liabilities 687,049 717,173

Long-term debt, less current
maturities 1,249,510 1,408,001
Note payable to JBS USA
Holdings, Inc. -- 50,000

Other long-term liabilities 144,906 145,941
------------ ------------

Total liabilities 2,081,465 2,321,115

Common stock 2,589 2,143
Additional paid-in capital 1,641,566 1,443,484
Accumulated deficit (804,772) (843,945)
Accumulated other comprehensive
loss (45,650) (46,070)
------------ ------------

Total Pilgrim's Pride
Corporation stockholders'
equity 793,733 555,612


Noncontrolling interest 3,243 2,818
------------ ------------


Total stockholders' equity 796,976 558,430
------------ ------------

Total liabilities and
stockholders' equity $ 2,878,441 $ 2,879,545
============ ============


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 25, March 27,
2012 2011
---------- ------------
(In thousands)

Net loss from continuing
operations $ 39,598 $ (119,895)

Add:
Income tax expense (benefit) 653 (9,872)
Interest expense, net 27,971 26,797
Depreciation and amortization 35,766 50,852
Minus:
Amortization of capitalized
loan costs 2,468 2,243
---------- ------------

EBITDA 101,520 (54,361)

Add:
Restructuring charges 2,885 1,766
Minus:
Net income attributable to
noncontrolling interest 425 865
---------- ------------

Adjusted EBITDA $ 103,980 $ (53,460)
========== ============




This news release was distributed by GlobeNewswire, www.globenewswire.com

SOURCE: Pilgrim's Pride Corporation

CONTACT: Rosemary Geelan
Pilgrim's Pride Investor Relations
[phone]

(C) Copyright 2010 GlobeNewswire, Inc. All rights reserved.
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