Pilgrim's Pride Corporation · NASDAQ:PPC
Pilgrim's Pride — Q4 2014 Earnings Presentation
18 slides from Pilgrim's Pride's earnings presentation, Feb 12, 2015
Slide 1: Financial Results for Fourth Quarter and Year Ended December 28, 2014
Pilgrim’s Pride Corporation Financial Results for Fourth Quarter and Year Ended December 28, 2014
Slide 2: Forward-looking statements
Statements contained in this presentation that share our intentions, beliefs, expectations or predictions for the future, denoted by the words “anticipate,” “believe,” “estimate,” “should,” “expect,” “project,” “plan,” “imply,” “intend,” “foresee” and similar expressions, are forward-looking state
Slide 3: Broiler Hatchery – Sets Averaging 3% Higher
Broiler Hatchery – Sets Averaging 3% Higher Source: USDA-WASDE 3 194,727 209,155 206,527 204,698 180,000 185,000 190,000 195,000 200,000 205,000 210,000 215,000 1/3 1/1 7 1/3 1 2/1 4 2/2 8 3/1 4 3/2 8 4/1 1 4/2 5 5/9 5/2 3 6/6 6/2 0 7/4 7/1 8 8/1 8/1 5 8/2 9 9/1 2 9/2 6 10/ 10 10/ 24 11/ 7 11/ 21 12
Slide 4: Placements Also Averaging 3% Higher
Placements Also Averaging 3% Higher Source: USDA-WASDE 4 159,467 171,174 170,070 168,024 145,000 150,000 155,000 160,000 165,000 170,000 175,000 180,000 1/3 1/1 7 1/3 1 2/1 4 2/2 8 3/1 4 3/2 8 4/1 1 4/2 5 5/9 5/2 3 6/6 6/2 0 7/4 7/1 8 8/1 8/1 5 8/2 9 9/1 2 9/2 6 10/ 10 10/ 24 11/ 7 11/ 21 12/ 5 12/
Slide 5: Hatching Layers Up 3% From Year Ago
Hatching layers in Dec were up 2.2% from year ago while egg production was up 0.8%. Dec pullet placements were up 5.0% and YTD placements are up 3%. Nov Hatching Layers Up 3% From Year Ago Source: USDA-WASDE 5
Slide 6: Chicken Inventories 6% Below Year Ago
Chicken Inventories 6% Below Year Ago Source: USDA-NASS Overall inventories are well below last year with big declines in wings and leg quarters. 6
Slide 7: Chicken Cutout Above Last Year's Levels
Chicken Cutout Above Last Year’s Levels Source: PPC 7
Slide 8: Wholesale Chicken Prices
Wholesale Chicken Prices Source: USDA-AMS 8
Slide 9: Global Stocks of Corn Continue to Build Globally
Global Stocks of Corn Continue to Build Globally Back to back record corn crops in the U.S. combined with Brazilian corn production pushing global stocks to nearly 190 million tons. At 19.4% stocks to use global inventories will be at one of the historically highest levels. Source: USDA-WASDE 9
Slide 10: Soybean Inventories Also Expanding
Soybean Inventories Also Expanding A record crop in South America is expected after a record U.S. crop pushing global inventories into a surplus. Source: USDA-WASDE 10
Slide 11: Fourth Quarter 2014 Financial Review
Fourth Quarter 2014 Financial Review Source: PPC Strong Quarter in U.S. and in Mexico. SG&A in-line with Q4-13, due to increased bonus accruals. Adjusted EBITDA 87% higher than Q4-13. Adjusted EPS of $0.83, including $48M for early retirement of debt and FX translations. Main Indicators ($M)
Slide 12: Full Year 2014 Capital Spending
Full Year 2014 Capital Spending Capex (US$M) Source: PPC Strong free cash flow generation has enabled us to direct more capital spending towards identified projects with rapid payback. 12
Slide 13: Investor Relations Contact
Investor Relations Contact Investor Relations: Dunham Winoto Director, Investor Relations E-mail: IRPPC@pilgrims.com Address: 1770 Promontory Circle Greeley, CO 80634 USA Website: www.pilgrims.com 13
Slide 14: Appendix: EBITDA Reconciliation
Appendix: EBITDA Reconciliation “EBITDA” is defined as the sum of net income (loss) plus interest, taxes, depreciation and amortization. “Adjusted EBITDA” is calculated by adding to EBITDA certain items of expense and deducting from EBITDA certain items of income that we believe are not indicative o
Slide 15: Appendix: Reconciliation of LTM EBITDA
Appendix: Reconciliation of LTM EBITDA Source: PPC The summary unaudited consolidated income statement data for the twelve months ended December 28, 2014 (the LTM Period) have been calculated by summing each of the unaudited thirteen week periods within the audited fifty-two week period ended Decemb
Slide 16: Appendix: Reconciliation of EBITDA Margin
Appendix: Reconciliation of EBITDA Margin Source: PPC EBITDA margins have been calculated using by taking the unaudited EBITDA figures and income statement components, then dividing by Net Revenue for the applicable period. 16 PILGRIM'S PRIDE CORPORATION Reconciliation of EBITDA Margin (Unaudited) T
Slide 17: Appendix: Reconciliation of Adjusted Earnings
Appendix: Reconciliation of Adjusted Earnings Source: PPC A reconciliation of net income (loss) attributable to Pilgrim's Pride Corporation per common diluted share to adjusted net income (loss) attributable to Pilgrim's Pride Corporation per common diluted share is as follows: 17 PILGRIM'S PRIDE CO
Slide 18: Appendix: Net Debt / Cash Position Reconciliation
Appendix: Net Debt / Cash Position Reconciliation Source: PPC Net debt is defined as total long term debt less current maturities, plus current maturities of long term debt, minus cash, cash equivalents and investments in available-for-sale securities. Net debt is presented because it is used by man