Pilgrim's Pride Corporation · NASDAQ:PPC
Pilgrim's Pride — Q2 FY2007 Earnings Presentation
21 slides from Pilgrim's Pride's earnings presentation, May 1, 2007
Slide 1: Fiscal 2007 2nd Quarter Financial Results
Pilgrim’s Pride Corporation Fiscal 2007 2"4 Quarter Financial Results May 1, 2007 ‘www. pilgrimspride. com
Slide 2: Cautionary Notes and Forward-Looking Statements
Cautionary Notes and Forward-Looking Statements = Statements contained in this presentation that state the intentions, plans, hopes, beliefs, anticipation, expectations or predictions of the future of Pilgrim's Pride Comoratian and its management, including as to the expected projected benefits and
Slide 3: Supply and Demand Dynamics Improving
Supply and Demand Dynamics Improving USDA Leg Quarter Inventories vs UB Market USDA Breast Meat Inventories vs UB Market Pricin: te ror Ai ano ts AAA os ome eT ao SE | fam Ee ee Bis = sope0 nin 40900 na PEPEEPPESPERERSER SE BEPEEEOSEESPEER IEEE soa /unertanytatet st SOA UnerBanytanet ——“ATestMatnrbu
Slide 4: Overview
Overview USDA estimates farmers will plant 90.5 million acres of corn in ‘07, 115% from 06 However, in 13 of last 20 years, actual plantings were below reported intentions USDA estimates that in 2007, approx. 5.8 billion bushels of the corn crop are intended for Feed & Residual Uses, 42.9% from 06 U
Slide 5: 2nd Fiscal Quarter
2" Fiscal Quarter FY2007" FY2006 % Change Actual Quarter to Date -$0.60 -$0.48 -25% Fiscal Year to Date -$0.73 -$0.09 -711% Pro Forma Quarter to Date -$0.60 -$0.99 39% Fiscal Year to Date -$1.25 -$0.83 51% Loss on Early Extinguishment of Debt -$0.14 NA () Includes a charge of $0.14 per share related
Slide 6: Sales Segment — Quarter
Sales Segment — 24 Quarter (Sin millions) Actual Pro forma FY2007 FY2006 % Change FY2006 % Change Chicken: United States $1,6835 $ 985.2 70.59% $ 1499.3 12.3% Mexico 111.0 104.0 67% 104.0 67% Total Chicken Sales 1,794.5 1,089.2 64.8% 1,603.3 11.9% Total Turkey Sales 12.3 17.1 -28.1% 17.2 -285% Sale
Slide 7: Sales Segment — 2nd Quarter YTD
Sales Segment — 2"4 Quarter YTD @ in mitions) Actual Pro forma FY2007 FY2006 % Change FY2007 FY2006 %Change Chicken: United States $27144 $2,0194 34.4% $ 3,229.3 $3,0625 54% Mexico. 234.0 196.4 19.1% 234.0 196.4 19.1% Total Chicken Sales 2,948.4 2,215.8 33.1% 3463.3 3,258.9 63% Total Turkey Sales 64
Slide 8: Results from Operations — 2nd Quarter
Results from Operations — 2.4 Quarter Actual Proforma (Sin tions, ecepteer share for) EY2007 FY2008 %Change FY2006 % Change EPS $ (060) $ (0.48) 250% $§ (0.99) 394% Net Sales $1,994.0 $1,265.7 —57.5% $ 1,795.2 11.1% Net (Loss) Income $ (401) $ (320) -253% $ (657) 39.0% EBITDA $ 314 $ (33) 1051.5% $
Slide 9: Results from Operations — 2nd Quarter YTD
Results from Operations — 2.4 Quarter YTD YTD Actual YTD Pro forma inwions.eroeptpershare gues) FY2007 FY2006 %Change = FY2007 = FY2008 + %Change EPS $ p73) $ (09) 711.1% $ (125) $ (083) sOe% Net Sales $agaii $$ 26095 27.7% $ 3858.9 $36802 49% Net (Loss) Incame $ (488) $ (6.3) 874.6% $ (829) $ (651)
Slide 10: Summary Operating Results — 2nd Quarter
Summary Operating Results — 2"4 Quarter (Sin millions) Three Months Ended Six Months Ended Fy2007 Fy2006 FY2007 Fy2006 Operating {Loss} Income: Chicken: United States $ 42) $ 7.7) $ (156) $ 16.1 Mexico (12.6) 18 (11.3) 6.2) Total Chicken (16.8) 5.9) (26.9) 10.9 Total Turkey 03 (6.7) 28 (12.4) Other
Slide 11: Summary Operating Results — Pro forma
Summary Operating Results — Pro forma (Sin millions) Three Months Ended Six Months Ended Fy2007 FY2006 FY2007 Fy2006 Operating (Loss) Income: Chicken: United States $ 42) $ (74.8) $ (466) $ (24.9) Mexico (12.6) 1.8 (11.3) (8.2) Total Chicken (16.8) (73.0) (87.3) (30.1) Total Turkey 03 (6.7) 28 (124)
Slide 12: Long-term Debt
Long-term Debt Fiscal Quarter Ending Pro forma Fiscal Quarter Ending Ginthousaces) March 31, 2007 December 30, 2006 Final Facilty Final Facilty Maturty Outstanding _Avalable Total Maturity Outstanding Available Total Senior unsecured notes, interest at 9 518% ait § 299,391 S 2938 11 «§ (299,406 $790
Slide 13: Other Credit Facilities
Other Credit Facilities Fiscal Quarter Ending Proforma Fiscal Quarter Ending Gin thousands) March 31, 2007 December 30, 2006 Final Facilty Final Facility Maturity Outstanding Available Total Maturity Outstancing Available Total Domestic Revoling Credit Facilty ‘at LIBOR plus 0.875% 213 § __§ 711,569
Slide 14: Summary of Credit Ratios
Summary of Credit Ratios LTMEnding Fy2006 313107 2Qryor 1QFY07 4QFYs —_3QFY06 EBITDA ! interest Expense (*) 3.37% 175x 0.83x 2.38% 5.4tx 70x Adj, EBITDA I interest Exp. (**) 3.53x 2.04x 1.22" 2.38x 6.01x 70x Total Debt /EBITDA (}) 4.13x 14.20 : 7.80x 4.13 2.06x Net Debt /EBITDA () 2.99x 1385 : 621x
Slide 15: Capital Expenditures
; Capital Expenditures laintenance/Other $234.3 fficiency/Expansion $2142 2 FY0s 2QFY0S 20 FYO? 6Mo 6Mo 6Mo 6M LIM LIM PF FYOS FYOSPF FYO? FY? PF yaw? 331r PF *The Company projects FY2007 capital expenditures of approximately $150 - $175 million 15 ‘www. pilgrimspride.com.
Slide 16: Appendix
Appendix Reconciliation of Non-GAAP Financial Results and Other Information ‘www. pilgrimspride. com
Slide 17: Appendix A — Reconciliation
Appendix A — Reconciliation Summary of Credit Ratios & Other Information EBITDA Reconeiliations* LTMEnding = LTMEnding = LTM Ending FY2006 33107 12130106 THIOG Net Income $ (34,282) (76,768) (68.646) 47,373 Addl Income Tax Expense (2,088) (23,704) (18,811) 12,980 Interest expense, net 40,553 72,264
Slide 18: Appendix B — Reconciliation
Appendix B — Reconciliation Adjusted EBITDA 102006 202006 +©=©3@2006 ~=— 4a2006 Fiscal Actual Actual Actual Actual Year Net Income (Loss) $25,678 $ (31,954) $(20.473) $ (7.483) | $ (34,232) Add Income Tax Expense (benefit) 10,962 (15,147) (17,501) 19,601 (2,085) Interest expense, net 8,448 10,057 11
Slide 19: Appendix C — Reconciliation
Appendix C — Reconciliation Adjusted LTM EBITDA 3a2008 402006 §=102007. «= 2a2007- [LTMEnding Actual Actual Actual Actual 384107 Net Income (Loss) $ (20473) $ (7.483) $ (8,736) $(40,077) |$ (76,769) Add Income Tax Expense (benefit) (17,501) 19,604 (5.764) (20,040) (23,704) Interest expense, net 1146
Slide 20: Appendix D — Reconciliation
Appendix D — Reconciliation Adjusted LTM EBITDA 202006 © 302006 «= 4a2006 §=1a2007_[ LTMEnding Actual Actual Actual __ Actual 1280/06 Net Income (Loss) $ (31,954) $(20,473) $(7483) $(8.736) |$ (68,646) Add Income Tax Expense (benefit) (15,147) (17,501) 19,601 (5,764) (18,811) Interest expense, net 1
Slide 21: Appendix E — Reconciliation
Appendix E — Reconciliation , LTM EBITDA 4Q2005 102006 2Q 2006 3Q2006 LTM Ending Actual Actual Actual Actual TAM406 Net Income (Loss) $ 74,728 $25,678 $(31,954) $(20473) |$ 47,979 Add. Income Tax Expense (benefit) 34,616 10,962 (15,147) (17,501) 12,930 Interest expense, net 10,068 8.448 10,057 11,46