Slide 1: Financial Results for Third Fiscal Quarter Ended September 25, 2011
Pilgrim’s Pride Corporation Financial Results for Third Fiscal Quarter Ended September 25, 2011 Exhibit 99.1
Slide 2: Cautionary Notes and Forward-Looking Statements
Cautionary Notes and 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
Slide 3: Third Quarter 2011 Financial Review
Third Quarter 2011 Financial Review Net loss of $162.5 million, or $0.76 per share, vs. net profit of $57.9 million, or $0.27 per share for the comparable quarter a year earlier Even with the non-recurring events, Pilgrim’s generated a positive operating cash flow of $10.7 million Total net sales in
Slide 4: Main Indicators ($MM) 3Q10 3Q11
Main Indicators ($MM) 3Q10 3Q11 Results Highlights * Adjusted for $52.7 million in non-recurring events in COGS and SG&A Net Revenue 1,719.8 1,891.2 Gross (Loss) Profit 159.8 (62.4) Net Income 57.9 (162.5) EBITDA 170.0 (84.1) Recurring EBITDA* 170.0 (31.4)
Slide 5: Sales Breakdown
Sales Breakdown Domestic Sales ($MM) +3.8% Exports ($MM) Mexico Sales ($MM) Domestic: higher volume on lower average price Exports: higher volume and higher price Mexico: higher volume on lower average price +65.6% +24.8%
Slide 6: Market Prices
Market Prices Bird MW WOG (Without Giblets) MW Breast Tender Out MW Wings MW Leg Quarters
Slide 7: Operating Costs
Operating Costs COGS ($MM) +23.5% SG&A ($MM) Non recurring Events: – $11.5 MM in Egg/ pullets destruction – $6 MM LOCOM – $7.9 MM inventory recall costs – Uninsured Losses in Marshville: $1.9MM Non recurring Events: – $8.8 MM in HFS Assets – $2.6 MM in Dallas shut-down costs Other Impacts (below the
Slide 8: Feed Costs
Feed Costs Corn ($ per Bushel) Soymeal ($per ton) 65.3% 15.4% 7.65 6.17 Feed ingredients purchased were approximately $102 million higher during the quarter than the year-ago period For the year, feed ingredients purchased were $545 higher than 2010 4.21 Q3 2010 Q3 2011 Q3 2010 Q3 2011 6.96
Slide 9: Main Indicators ($MM) 3Q10 3Q11 Change
Main Indicators ($MM) 3Q10 3Q11 Change Results of Operations Net Income 57.9 (162.5) (220.4) Net Income per Share Basic 0.27 (0.76) (1.03) Diluted 0.27 (0.76) (1.03) Recurring Net Income* 57.9 (109.8) (170.2) Recurring Net Income per Share Basic 0.27 (0.52) (0.79) Diluted 0.27 (0.52) (0.79) * Adjust
Slide 10: Operating Cash Flow and CAPEX
Operating Cash Flow and CAPEX Operating Cash Flow ($MM) Capex ($ MM) Tight reign on capital spending Capex for the year to be around $130 million Positive Operating Cash Flow in the Quarter – Reduction of A/R – Optimizing Inventory – Non-cash, non-recurring impacts 10.7 179.3 64.0 39.2 18.7 121.9 20
Slide 11: Sources of Liquidity
Sources of Liquidity Amount Available Q1 Q2 Q3 Total Debt and Availability Cash and cash equivalents 34.6 46.9 Short-term investments in available-for- sale securities 1.4 0.8 0.1 Borrowing arrangements: Exit Credit Facility 334.7 279.8 243.9 ING Credit Facility 46.5 46.8 22.2* JBS Subordinated Loan
Slide 12: Highlights and Strategy Going Forward
Highlights and Strategy Going Forward Quarter with difficult decisions that must be made to generate positive impact on future quarters Grain volatility is here to stay Chicken Industry is adjusting its offer to meet demand and cold inventories are already below 2010 levels We remain committed to Be
Slide 13: Contact
IR Contact Investor Relations: Rosemary Geelan E-mail: rosemary.geelan@pilgrims.com Phone: +1 (970) 506-8192 Address: 1770 Promontory Circle Greeley, CO 80634 USA Website: www.pilgrims.com