Pilgrim's Pride Corporation · NASDAQ:PPC
Pilgrim's Pride — Q3 FY2006 Earnings Presentation
28 slides from Pilgrim's Pride's earnings presentation, Aug 1, 2006
Slide 1: Pilgrim's Pride Corporation Fiscal 2006 3rd Quarter Results
——————— Pilgrim’s Pride Corporation Fiscal 2006 3 Quarter Results August 1, 2006
Slide 2: Cautionary Notes And Forward-Looking Statements
7 Cautionary Notes And Forward-Looking Statements Statements contained in this press release that state the intentions, plans, hopes, beliefs, anticipations, expectations ot predictions of the future of Pilgrim's Pride Corparation and its management, including’ as ta changes in pricing, demand and M
Slide 3: U.S. Meat Supply Growth
—_———— U.S. Meat Supply Growth (million bs.) % % % % 2003 2004 Change _2005 Change 2006P Change 2007P Change Beef 26238 «24.548 6.4% © «24883 05% 26,103 58% 26,755 25% Pork 1994 20509 28% 20684 09% 21271 28% 21760 23% Total Red Meat 46183 45057 24% 45,307 0.7% 47 B74 44% © AB EIS 2.4% Chicken 32749
Slide 4: Chicken Slaughter Per Processing Day
te Chicken Slaughter Per Processing Day DA 7 BL million head/day 7 36 35 34 33 32 3 30 SS et uly2008 forward forecast —e- 2003 —*- 2004 2005 #2006 roe: USDA & Informa Eoonomics Projectons dated July 19,2008
Slide 5: Broiler Cold Storage Inventories
_————— Broiler Cold Storage Inventories “= A 600 Se s00 uly2006 foward orcast J F M oA i) wu) J A s ° N BD 400 2003 2004 2005 2006 Source: USDA and Informa Economics Projections dated July 19, 2008,
Slide 6: U.S. Per Capita Consumption (lbs.)
SM U.S. Per Capita Consumption (Ibs.) % % % 2004 2005P__Ghange —_2006P_— Change = 2007P_Ghange Beef 66.1 655 09% 66.5 15% 668 05% Pork 51a 500 _ -2.5% 496 -0.8% 50.5 1.8% Total Red Meat 117.4 155 -1.6% 116.1 05% = 1173 1.0% Chicken 854 874 L__ 2.0%) 88.2 |___ 1.3% a5 |__ 15%) Tukey 17.0 167 1.8% 166
Slide 7: U.S. Industry Outlook- Continued
—_———— U.S. Industry Outlook- Continued Pricing environment during (vs. prior year periods) : Change from End of 3rd Qtr FY 06* rd Qtr Yter 3rd Qtr FY2006" = GADack > 83% to $0.68. 5.7% to $0.70. —-+1.5% to $0. 70M Leg Quarters * —-33.9% to $0.25/lb. -19.1% to $0.26Mb. 16.8% to $0.37 Mlb Other: = Wi
Slide 8: Top U.S. Chicken Export Markets
7 Top U.S. Chicken Export Markets Gilions) 2002 2003 2004 2005 2006P Tes. ‘hllbs. Ibs. “Wibs. babs. == sdb, =, Wibe. Rusia) 1521 31.67% = 1465 29.56% «1570 S2EZK 16H FN «17 133% Mexico?) 37 681% 35 TK | TOTS. SEF 10.31% 13 360% 292 5.9% 36 075% = 2084 731% Hong Kong 608 126% 309 6% 2B 47k 139 270% 1
Slide 9: U.S. Industry Outlook- Continued
7 U.S. Industry Outlook- Continued = Grain Market FY2006 Actuals: 3" Qtr FYO6 3"! Qtr YTD FYO6 Near-by Futures vs, Prior Year YTD a Corn* +13.6% to $2.43ibushel +5.2% to $2.24Ibushel a Soybean Meal” -12.2% ta $174.16itan +0.9% to $177.32Itan FY2007 Outlook: 2006-2007 Crop Year 2006-2007 Crop Year US
Slide 10: Energy Pricing
7 Energy Pricing Energy Information Administration (EIA) - U.S. Energy Prices: Base Gase 2005 ? 2006 007 “tst_[_2na_[_3ra_[_atn_[ ast [ana [ 3ra [atm [ast [na | ara] sth Diesef G/ya) 2.07 226 256 271 2580 284 287 277 265 271 269 277 Natural Gas’ (emef) 662 7.14 9.23 1264 7.95 674 692 883 879 701 7.5
Slide 11: Results from Operations — Quarter
SM Results from Operations — 3 Quarter inmilions, except per share gues) EPS Net Sales Net (Loss) Incorre EBITDA EBITDA Reconciliation Net (Loss) Income Ad: Incorre Tax (Benefit) Expense Interest expense, net Depreciation and amortization Minus: Amortization of capitalized financing casts EBITDA - a
Slide 12: Results from Operations — Quarter YTD
SM Results from Operations — 3 Quarter YTD @ inmilons, except pershae figures) Actual Fy2006 FY2008 — %Change EPS $ (040) § 286 -114.0% NetSales $ 38972 $ 41836 -6.8% Net (Loss) Income $ (267) $ 1903 -114.0% EBITDA $ 796 $ 4206 -81.1% EBITDA Reconciliation Net (Loss) Income $ (267) $ 1903 Adel Incom
Slide 13: Sales by Segment — Actual
SM Sales by Segment — Actual Gin milions) 3° Quarter 3° Quarter YTD. Fy2006 _ FY2005 %Change — FY2006 FY2005 %Change Chicken United States $10199 $1,128.41 3.2% $3,0393 $3,2487 6.5% Mexico 107.0 114.4 6.5% 303.4 302.2 0.4% Total Chicken Sales $1,1269 $12375 89% $3,9427 $35509 69% Total Turkey Sales
Slide 14: Summary Operating Results — Actual
—_———— Summary Operating Results — Actual (Bin millions) 3° Quarter 3° Quarter YTD. Fy2006 _—~FY2005 Fy2006 _-FY2005 Operating Income (Loss): Chicken United States $ (21) $ 1212 $ (40) $ 2919 Mexica (5.0) 178 (10.2) 31.9 Sub Total $ (251) $ 1390 $ (142) $ 3238 Turkey (3.6) (6.4)* (16.0) (16.6) * Oth
Slide 15: Long-Term Debt
SM Long-Term Debt (Binthousands) Senior unsecured notes, interest at 95/8% Senior unsecured notes, interest at 949% Note payable ton insurance com pany 6.55% Notes payableto an insurence company a LIBOR plus 2 2075% Revolving term reat facity at LIBOR plus 1.00% Industrial revenue hondat variable ra
Slide 16: Other Credit Facilities
Other Credit Facilities Fiecal Quater Ending Fiseal Year Ending (Sin thousands) uty 4, 2008 otober 1, 2005 Final Facility Final Fact Maturty Outstanding Available 44), —=Malurty Outstanding Avallable ye) Domastio Revoling Credit Facility atLIBOR plus 0.875% mo S $ R1sI7 § 16000 2009 3 118782 § 100.0
Slide 17: Capital Expenditures
i Capital Expenditures 180 i W Maintenanceither 140 120 100 80 60 973 40 $268 $18.3 20 si96 © Spansiontefficiency $1278 $116.6 $101.3 $30.1 $79.6 $43.5 $33.1 $57.0 $578 ap 3Q FYOS 30 FYO6 amo | 9.Mo FY 2004 FY 2005 Fyos _FY06 LT 7106" The Company projects FY2906 capita! expenditures of appraximately
Slide 18: Summary Credit Ratios & Other Information
—_———— Summary Credit Ratios & Other Information Fy2005 Ending YDS 3QFYO5 3QFY05 9-MoFYO5 9.Mo FYO6. EBITDA/ Interest Expense (~) 13.20% 537x 13.46x o7ox 1242 265x Adj. EBITDA/ Interest Exp. (“) 12.82x 5S7x 13.39x o7ox 1152x 285x Total Debt/EBITDA (4 o.stx E : : os2x. 2.06x Net Debt/ EBITDA} 0.68x E
Slide 19: Summary Credit Ratios & Other Information — Continued
Summary Credit Ratios & Other Information — Continued EBITDA Reconciliation of FY2005 and LTM Periods EBITDA Lim um Fy2005 Ending 772105 Ending 7/1205 Net Inoome 3 pasta 8 woe 8 aon A Income Tac Expense rasa 149,044 20 Interest expanse, net 3032 46;385 an,041 Depreciation and amortization ran vaget
Slide 20: Reconciliation of Non-GAAP Measures and Other Computations
ss Reconciliation of Non-GAAP Measures and Other Computations 20
Slide 21: Appendix A: Chicken Sales — Actual
—_———— Appendix A Chicken Sales — Actual Simin 3° Quarter 3° Quarter YTD Fy2006 — FY2005 %Change FY2006 © FY2005 %Change Prepared Foods: Foodservice § 3909 § 4003 24% $§11586 $12173 -48% Retail 83.2 71 9.4% 290 2064 11.0% Total Prepared Foods aad W764 05% ~ (e876 14237 2.5% Fresh Chicken Foodsewice
Slide 22: Appendix B: Turkey Sales — Actual
7 Appendix B Turkey Sales — Actual eum Prepared Foods Foodservice Retail Total Prepared Foods Fresh Turkey Foodservice Retail Total Fresh Turkey Export and Other Prepared Foods Turkey Other Total Export Other Turkey By Products Total Export and Cther Total Turkey Sales 3" Quarter 3° Quarter YTD Fyao
Slide 23: Appendix C: Reconciliation — Adjusted EBITDA
'?—_————— Appendix C Reconciliation — Adjusted EBITDA SQFYOS 3QFYOS 9-Mo FYDS* 9-Mo FYO6 ~ Net Income (Loss) $ 85,352 $ (20,473) $190,260 $ (26,749) Addl Income Tax Expense (benefit) 38,324 (17,501) 103,928 (21,686) Interest expense, net 12322 11,468 33,864 29,973 Depreciation and amartization 30421
Slide 24: Appendix D: Reconciliation — Adjusted LTM EBITDA
—_————— Appendix D Reconciliation — Adjusted LTM EBITDA 4oz004 102005 = 202005 302005 TM Actual _ Actual Actual Actual__ [Ending 7205 Net Income § 75290 § 48509 § 56389 86352 |§ 265,540 Add: Income Tax Expense (beneft) 46016 31,400 34.204 38,324 149,944 Interest expense, net W1a71 12,224 9318 12,322
Slide 25: Appendix E: Reconciliation — Adjusted FY2005 EBITDA
7 Appendix E Reconciliation — Adjusted FY2005 EBITDA 1qz005 © 2qz005 © 3a7005 [3Q2005 | 4qz005 = FY2005 Actual Actual Actual | YTD" | Actual Actual Net Income $48,509 § 56,389 § 85,352 | $190,250) § 74,729 § 264,979 Add: Income Tax Expense (benef) 31400 34,204 «= 38,324 | 103,928) 34.616 138,544 Int
Slide 26: Appendix F: Reconciliation - LTM EBITDA
OM Appendix F Reconciliation -LTM EBITDA Net Income (Loss) Add: Incame Tax Expense (benefit) Interest expense, net Depreciation and amortization Minus Amortization of capitalized financing costs EBITDA, 4qz005 107005 += 202006 © «3.2006 Tm Actual __ Actual Actual Actual [Ending 7/1/06 $74,728 § 2567
Slide 27: Appendix G: Reconciliation - EBITDA YTD Actual
—_————— Appendix G Reconciliation - EBITDA YTD Actual 1q2006 2Q2006 3a2006 [ 302006 Actual Actual Actual yro Net Income (Lass) $25,678 $(31,954) $(20.473) |$ (26,749) Add Income Tax Expense (benefit) 10,962 (15,147) (17,501) (21,686) Interest expense, net 8448 10,057 11,468 29973 Depreciation and am
Slide 28: Appendix H: Reconciliation — LTM Capital Expenditures
Appendix H Reconciliation — LTM Capital Expenditures Maintenance/Other Efficieney/Expansion Total Capital Expenditures 4q2005 = 192006 2Q2006 3Q2006 LT™ Actual Actual Actual Actual Ending 7406 $ 1268 $ 270 $ 155 $ 154 |$ 70.5 13.8 189 15.2 14 57.3 $364 $435 FS 307 ¢ 268 [¢ 127.8 28