Pilgrim's Pride Corporation · NASDAQ:PPC
Pilgrim's Pride — Q2 2015 Earnings Presentation
19 slides from Pilgrim's Pride's earnings presentation, Jul 30, 2015
Slide 1: Pilgrim's Pride Corporation Financial Results for Second Quarter Ended June 28, 2015
Pilgrim’s Pride Corporation Financial Results for Second Quarter Ended June 28, 2015
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 – Egg Sets Averaging 1% Higher
Broiler Hatchery – Egg Sets Averaging 1% Higher Source: USDA 3
Slide 4: Placements Averaging 3% Higher
Placements Averaging 3% Higher Source: USDA 4
Slide 5: Jumbo Bird vs. Small Bird Slaughter
Jumbo Bird vs. Small Bird Slaughter Source: USDA 5 Up 12% Down 5%
Slide 6: June Hatching Layers Up 2.7% From Year Ago
Hatching layer growth remains moderate despite volatility in pullet placements. Pullet placements up 6% YTD. Hatching layers in June were up 2.7% from a year ago. Egg production up 1.7%. June Hatching Layers Up 2.7% From Year Ago Source: USDA 6
Slide 7: Chicken Inventories Impacted by Soft Exports
Chicken Inventories Impacted by Soft Exports Source: USDA Overall inventories higher than last year on bigger leg quarter and breast meat inventories due to soft exports, harder comparisons, and more big bird production. A reduction of overall inventories over the last 2 months. 7
Slide 8: Cutout Values Affected by Soft Export Market
Cutout Values Affected by Soft Export Market Source: PPC 8
Slide 9: Wholesale Chicken Prices
Wholesale Chicken Prices Source: USDA 9
Slide 10: Global Stocks of Corn Still More than Ample
Global Stocks of Corn Still More than Ample Record crops in the U.S. and Brazil in ‘14/15 have kept global inventories in surplus. At 19.2% stocks to use, global inventories will be at one of historically highest levels. Source: USDA 10
Slide 11: Soybean Inventories Also Expanding
Soybean Inventories Also Expanding A record South American crop combined with record planted acres in the U.S. pushing global inventories higher. Source: USDA 11
Slide 12: Second Quarter 2015 Financial Review
Second Quarter 2015 Financial Review Source: PPC Solid Quarter in U.S. and Mexico. Volumes impacted by operational improvement projects. SG&A higher than Q2-14, due to increased bonus accruals and restructuring charges Adjusted EBITDA 26% higher than Q2-14. Adjusted EPS of $0.94. Main Indi
Slide 13: Net Debt Remains Low
Net Debt Remains Low Source: PPC Cash flow generation of $246MM in the quarter. Net debt multiple remains low at 0.52x LTM EBITDA (post TSN-MX purchase). 13 826.3 400 TSN MX
Slide 14: Second Quarter 2015 Capital Spending
Second Quarter 2015 Capital Spending Capex (US$M) Source: PPC Strong free cash flow generation has enabled us to direct more capital spending towards identified projects with rapid payback. 14
Slide 15: 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 15
Slide 16: 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 17: Appendix: Reconciliation of LTM EBITDA
Appendix: Reconciliation of LTM EBITDA Source: PPC The summary unaudited consolidated income statement data for the twelve months ended June 28, 2015 (the LTM Period) have been calculated by subtracting the applicable unaudited consolidated income statement data for the six months ended June 29, 201
Slide 18: 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: 18 PILGRIM'S PRIDE CO
Slide 19: 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