Slide 1: Pilgrim's Pride Corporation Financial Results for First Quarter Ended March 27, 2016
Pilgrim’s Pride Corporation Financial Results for First Quarter Ended March 27, 2016
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: Egg Sets Up Slightly YTD vs 2015
Egg Sets Up Slightly YTD vs 2015 Source: USDA 3 211,832.0 190,260.0 207,152.0 210,279.0 209,274.0 180,000 185,000 190,000 195,000 200,000 205,000 210,000 215,000 1/ 9 1/ 23 2/ 6 2/ 20 3/ 5 3/ 19 4/ 2 4/ 16 4/ 30 5/ 14 5/ 28 6/ 11 6/ 25 7/ 9 7/ 23 8/ 6 8/ 20 9/ 3 9/ 17 10 /1 10 /1 5 10 /2 9 11 /1 2 1
Slide 4: Chick Placements Averaging +1% Compared to 2015
Chick Placements Averaging +1% Compared to 2015 Source: USDA 4 174,769.0 156,050.0 168,336.0 172,673.0 170,258.0 145,000 150,000 155,000 160,000 165,000 170,000 175,000 180,000 1/ 9 1/ 23 2/ 6 2/ 20 3/ 5 3/ 19 4/ 2 4/ 16 4/ 30 5/ 14 5/ 28 6/ 11 6/ 25 7/ 9 7/ 23 8/ 6 8/ 20 9/ 3 9/ 17 10 /1 10 /1 5 10
Slide 5: Jumbo Bird Continues to Gain Market Share
Jumbo Bird Continues to Gain Market Share Source: USDA 5
Slide 6: Hatching Layers at Moderate Growth
Hatching layers in March were up 1% from 2015. Monthly pullet placements are volatile and less reflective of flock growth. Hatching Layers at Moderate Growth Source: USDA 6
Slide 7: Cold Storage Beginning to Decline
Cold Storage Beginning to Decline Source: USDA Overall inventories higher than 2015 but leg quarters are a lot lower. Total chicken starting to decline month to month. 7
Slide 8: Cutout Values Improving and Contract Still at Strong Levels
Cutout Values Improving and Contract Still at Strong Levels Source: PPC 8
Slide 9: Cutout Value Improving Due to Leg Quarters and Tenders
Cutout Value Improving Due to Leg Quarters and Tenders Source: USDA 9
Slide 10: Corn Stocks Still at High Levels
Corn Stocks Still at High Levels Global stocks up slightly from last year as harvest remains plentiful. At 21.5%, stocks to use global inventories will be at one of historically highest levels. Source: USDA 10
Slide 11: Global Soybean Inventories Expanding
Global Soybean Inventories Expanding Record crops in US, Brazil and Argentina all contributing to record global stocks for oilseeds. Stocks/Use globally remains at high levels. Source: USDA 11
Slide 12: First Quarter 2016 Financial Review
First Quarter 2016 Financial Review Improved Q1 performance: U.S. gains on better access to exports, well-balanced portfolio, and positive seasonality while MX environment improving. SG&A in-line with Q1-15 despite Mexico Acquisition. Adjusted Q1-16 EBITDA below Q1-15 on tough comps however st
Slide 13: Net Debt Remains Low
Net Debt Remains Low Source: PPC Free Cash Flow generation of $141MM in the quarter. Net debt multiple remains low at 0.40x LTM EBITDA. 13 307.1
Slide 14: First Quarter 2016 Capital Spending
First Quarter 2016 Capital Spending Capex (US$M) Source: PPC Strong Free Cash Flow generation has enabled us to direct more capital spending towards identified projects with rapid payback and structural projects. 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 March 27, 2016 (the LTM Period) have been calculated by subtracting the applicable unaudited consolidated income statement data for the three months ended March 29,
Slide 18: 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. 18 PILGRIM'S PRIDE CORPORATION Reconciliation of EBITDA Margin (Unaudited) T
Slide 19: 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: 19 PILGRIM'S PRIDE CO
Slide 20: Appendix: Reconciliation of Adjusted EPS
Appendix: Reconciliation of Adjusted EPS Source: PPC A reconciliation of GAAP earnings per share (EPS) to adjusted earnings per share (EPS) is as follows: 20 PILGRIM'S PRIDE CORPORATION Reconciliation of GAAP EPS to Adjusted EPS (Unaudited) Thirteen Weeks Ended March 27, 2016 March 29, 2015 (In thou
Slide 21: 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 and notes payable, minus cash, cash equivalents and investments in available-for-sale securities. Net debt is presented because