Slide 1: Pilgrim's Pride Corporation Financial Results for First Quarter Ended March 29, 2015
Pilgrim’s Pride Corporation Financial Results for First Quarter Ended March 29, 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 3% Higher
Broiler Hatchery – Egg Sets Averaging 3% Higher Source: USDA 3 195,432 209,093 205,040 210,369 209,287 180,000 185,000 190,000 195,000 200,000 205,000 210,000 215,000 1/3 1/1 7 1/3 1 2/1 4 2/2 8 3/1 4 3/2 8 4/1 1 4/2 5 5/9 5/2 3 6/6 6/2 0 7/4 7/1 8 8/1 8/1 5 8/2 9 9/1 2 9/2 6 10/ 10 10/ 24 11/ 7 11/
Slide 4: Placements Also Averaging 3% Higher
Placements Also Averaging 3% Higher Source: USDA 4 159,463 171,120 167,805 171,029 145,000 150,000 155,000 160,000 165,000 170,000 175,000 180,000 1/3 1/1 7 1/3 1 2/1 4 2/2 8 3/1 4 3/2 8 4/1 1 4/2 5 5/9 5/2 3 6/6 6/2 0 7/4 7/1 8 8/1 8/1 5 8/2 9 9/1 2 9/2 6 10/ 10 10/ 24 11/ 7 11/ 21 12/ 5 12/ 19 Tho
Slide 5: Jumbo Bird vs. Small Bird Slaughter
Jumbo Bird vs. Small Bird Slaughter Source: USDA 5 Up 18% Down 3%
Slide 6: Mar Hatching Layers Up 2.1% From Year Ago
Hatching layers in Mar were up 2.1% from year ago while egg production was up 0.9%. Mar pullet placements were up 5.7%. Mar Hatching Layers Up 2.1% 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 and harder comparisons. 7
Slide 8: Chicken Cutout Still Solid Despite Leg Quarters
Chicken Cutout Still Solid Despite Leg Quarters Source: PPC 8
Slide 9: Wholesale Chicken Prices
Wholesale Chicken Prices Source: USDA 9
Slide 10: Global Stocks of Corn Continue to Build Globally
Global Stocks of Corn Continue to Build Globally Back to back record corn crops in the U.S. combined with Brazilian corn production pushing global stocks to nearly 190 million tons. At 19.3% stocks to use global inventories will be at one of the historically highest levels. Source: USDA 10
Slide 11: Soybean Inventories Also Expanding
Soybean Inventories Also Expanding A record crop in South America is expected after a record U.S. crop pushing global inventories into a surplus. Source: USDA 11
Slide 12: First Quarter 2015 Financial Review
First Quarter 2015 Financial Review Source: PPC Strong Quarter in U.S. and Mexico. SG&A higher than Q1-14, due to increased bonus accruals. Adjusted EBITDA 77% higher than Q1-14. Adjusted EPS of $0.82. Main Indicators ($M) Q1-14 Q1-15 Net Revenue 2,018.1 2,052.9 Gross Profit 215.1 377.1 SG&A
Slide 13: Net Debt Remains Low
Net Debt Remains Low Source: PPC Cash flow generation of $250MM in the quarter. Following $1.5B special dividend and $500MM note issue, net debt multiple remains low at 0.45x LTM EBITDA. 13 1.5B Div.
Slide 14: First Quarter 2015 Capital Spending
First Quarter 2015 Capital Spending Capex (US$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 March 29, 2015 (the LTM Period) have been calculated by subtracting the applicable unaudited consolidated income statement data for the three months ended March 30,
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