Pilgrim's Pride Corporation · NASDAQ:PPC
Pilgrim's Pride — Q3 FY2007 Earnings Presentation
21 slides from Pilgrim's Pride's earnings presentation, Jul 31, 2007
Slide 1: Pilgrim's Pride Corporation Fiscal 2007 3rd Quarter Financial Results
Pilgrim’s Pride Corporation Fiscal 2007 34 Quarter Financial Results July 31, 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, anticipations, expectations or predictions of the future of Pilgrim's Pride Coraration and its management, including as to the expected benefits and synergies
Slide 3: Improved Pricing Helping to Offset High Corn Costs
Improved Pricing Helping to Offset High Corn Costs UB Boneless Skinless Breast Meat Pricin UB Leg Quarter Pricing me LA 1 See “bet
Slide 4: Feed Cost Remains High Despite Lower Corn Pricing
180 170 Feed Cost Remains High Despite Lower Corn Pricing 160 150 140 130 Feed Cost per Ton ($) 120 110 100 Source: EMI Analytics JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC «2003 —@—2004 —*—-2005 —e—2006 —+—2007 ‘ywwwplarimspride.com
Slide 5: 3rd Fiscal Quarter
3" Fiscal Quarter FY2007* FY2006 % Change Actual Third Fiscal Quarter $0.94 -$0.31 403% Third Fiscal Quarter Year to Date $0.21 -$0.40 153% Pro Forma Third Fiscal Quarter $0.94 -$0.68 238% Third Fiscal Quarter Year to Date -$0.30 -$1.51 80% () Includes a charge of $0.14 per share related to the earl
Slide 6: Sales Segment — Quarter
Sales Segment — 3 Quarter (Bin mittions) Actual Pro forma FY2007 FY2006 % Change FY2006 % Change Chicken: United States $1,8094 $ 1,019.9 TIAN $ 1,509.4 19.9% Mexico 131.6 107.0 23.0% 107.0 23.0% Total Chicken Sales 1,941.0 1,126.9 72.2% 1616.4 20.1% Total Turkey Sales 18.9 15.8 19.6% 15.9 18.9% Sal
Slide 7: Sales Segment — Quarter YTD
Sales Segment — 3 Quarter YTD (8 in mittions) Actual Pro forma FY2007 FY2006 % Change FY2007 FY2006 %Change Chicken United States $45237 $3,0393 48.8% $5,0386 $4,5718 10.2% Mexico 365.6 303.4 20.5% 3656 303.4 205% Total Chicken Sales 4889.3 3,342.7 46.3% 5404.2 4875.2 10.9% Total Turkey Sales 83.0 9
Slide 8: Results from Operations — 3rd Quarter
Results from Operations — 3" Quarter Actual Proforma (Bint tons, except ger share fue) FY2007 FY2008 %Change FY2006 % Change EPS $ 094 $§ (0.31) 403.2% $ (0.68) 238.2% Net Sales $2.1184 $1,287.66 64.5% $1791.41 18.3% Net (Loss) Income $ 626 $ (205) 4054% $ (453) 238.2% EBITDA $ 1985 $ 80 235632% $ 1
Slide 9: Results from Operations — Quarter YTD
Results from Operations — 3 Quarter YTD YTD Actual YTD Pro forma ina tons. erceptpershar gues) FY2007 FY2006 %Change = FY2007 = FY2008 © %Change EPS $ 021 $ (40) 525% $ (0.30) $ (151) 801% Net Sales $54495 $38972 39.8% $59773 $5AT13 9.2% Net (Loss) Incame $ 138 $ (28.7) 1517% $ (203) $ (004) 79.8% E
Slide 10: Summary Operating Results — Quarter
Summary Operating Results — 3 Quarter nin (Sin millions) Three Months Ended Nine Months Ended Fy2007 FY2006 FY2007 Fy2006 Operating (Loss) Income: Chicken: United States $ 1168 $ (20.1) $ 1011 §¢ (4.0) Mexico 144 (5.0) 3.2 (10.2) Total Chicken 1312 (25.1) 104.3 (14.2) Total Turkey (3) (3.6) 09 (16.0
Slide 11: Summary Operating Results — Pro forma
Summary Operating Results — Pro forma nin (Sin millions) Three Months Ended Nine Months Ended FY2007 Fy2006 FY2007 FY2006 Operating {Loss} Income: Chicken: United States $ 1168 $ (41.2) $ 700 $ (66.1) Mexico 144 6.0) 3.2 (10.2) Total Chicken 131.2 (46.2) 73.2 (76.3) Total Turkey (3) @.6) 09 (16.0) O
Slide 12: Long-term Debt
Long-term Debt Fiscal Quarter € ing Proforma Fiscal Quarter Ending in ousanis) skne 30,2007 December 30,2005" Final Facity Final Facity Malurty _Outstancing _Aveieble__Total__—_Mturty Outstending avaible Total Serior ursecurednotes, interest at 956% © ~ 2011 $9985 ~~~ «SO TEE DoT $s Serior ursecured
Slide 13: Other Credit Facilities
Other Credit Facilities Fiscal Quatter Ending Proforrna Fiscal Quarter Ending (Sin thous ands) June 30, 2007 December 30, 2006 Final Facility Final Facility Maturity Outstanding Available pe Maturity Outstanding Avaltable ol Domestic Revalving Credit Facility at LIBOR plus 0.875% m3 og - $215,100 §
Slide 14: Summary of Credit Ratios
Summary of Credit Ratios LTMEnding Fy2006 ers007 3QFYO7_ 2QFYO7_ 1QFYO?_ _4QFY06 EBITDA ! interest Expense (“) 3.37% 3.10x 4.83x 083x 239% 541x Adj, EBITDA I Interest Exp. (“) 3.53x 3.25 4.83x 122% 239% 601K Total Debt /EBITDA (}) 4.43x 5A6x : 14.20x 7 80x 4.130 Net Debt /EBITDA (*) 2.99x 5.28x : 13
Slide 15: Capital Expenditures
Capital Expenditures laintenance/Other $2343 fficiency/Expansion 220 $206.4 249 $176.9 SQ FYDS 3QFY0S 30 FYO? Lm LIM PF FYOS FYOSPF FYO? FO? PF enon? smOn7 PF *The Company projects FY2007 capital expenditures of approximately $170 - $180 million 15 ‘ywwwplarimspride.com
Slide 16: Appendix: Reconciliation of Non-GAAP Financial Results and Other Information
Appendix Reconciliation of Non-GAAP Financial Results and Other Information ‘www. pilgrimspride. com
Slide 17: EBITDA Reconciliations
EBITDA Reconciliations* Appendix A — Reconciliation Summary of Credit Ratios & Other Information LTM Ending LTM Ending LTM Ending FY2006 GIB0107 33107 12130106 Net Income $ (34,282) 6.346 $ (76,768) $ (68,646) Addl Income Tax Expense (2,088) 30,079 (23,704) (18,811) Interest expense, net 40,553 101,
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
Net Income (Loss) Add Income Tax Expense (benefit) Interest expense, net Depreciation and amortization Minus Amortization of capitalized financing costs EBITDA Adjustments Accounting Adjustments related to benefit plans Loss on early extinguishment of debt Adjusted EBITDA Appendix C — Reconciliation
Slide 20: Appendix D — Reconciliation
Appendix D — Reconciliation Adjusted LTM EBITDA 302006 42006 += 142007. »=—_ 202007: [ LTM Ending Actual Actual __ Actual Actual 3/31/07 Net Income (Loss) $ (20,473) $ (7.483) $ (8,736) $(40,077) |$ (56,296) Add Income Tax Expense (benefit) (17,501) 19,601 (5.764) (20,040) (6.203) Interest expense,
Slide 21: Appendix E — Reconciliation
Appendix E — 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