Pilgrim's Pride Corporation · NASDAQ:PPC
Pilgrim's Pride — Q3 FY2004 Earnings Presentation
27 slides from Pilgrim's Pride's earnings presentation, Jul 26, 2004
Slide 1: Overview of 3rd Quarter of Fiscal 2004 vs Fiscal 2003
te Pilgrim’s Pride Corporation Overview of 3rd Quarter of Fiscal 2004 vs Fiscal 2003 July 26, 2004
Slide 2: Cautionary Notes and Forward-Looking Statements
Cautionary Notes and Forward-Looking Statements ‘Statements contained in ths presentalion that stale the infeniions, hopes, beets, anfipalions, expectalions or precicSons of he {fulure of Paigaim’s Pride ands Fw pokay stlerents, Wi 0 note inal the achral resus ‘ poco at oun fort ene) cotetens es ace
Slide 3: U.S. Meat Supply Growth - Remains Nominal
7 U.S. Meat Supply Growth - Remains Nominal % % % 2001 2002 Ghange 2003 Change 2004P Change Beet 26,102 4% «= - 26,234 (3%) «25,188 (4%) Pork 19,137 3% 19918 1% = 20345 me Total Red Meat 45,230 46754 3% 46,152 (1%) 45,533 (1%) Chicken 31,286 32.240 3% 32,749 2% «= 33.43 A Turkey 5513 5660 3% 5.589 (
Slide 4: U.S. Per Capita Consumption
—_———— U.S. Per Capita Consumption % % % 2001 2002 Change 2003 Change 2004P Change 662 676 21% 64.9 (40%) 663 22% 50.2 515 26% 518 6% 518 0% 164 1191 23% 116.7 (20%) 118.1 1.2% 755 819 85% 829 1.2% 868 47% 75 177 14% 174 (1.7%) 17.0 (23%) 930 996 7.1% 100.3 07% 1038 35% 294 2187 44% 2170 (8%) 2219 2
Slide 5: Top US Chicken Export Markets
7 Top US Chicken Export Markets 09 200 am bs. %fbs. hs. Ss. is. KMS. Russa 709 HIO% 1.262 247M 2. AO Hong Kong 940. 20.30% 918 17.99% 70 13.20% Mexico? 299 6.40% 351 GSK 1 6% China? 125 2.7% 135 265% ms 1.9% Korea™ 99 2.1% 162 217% 2 40% Other 2AK3 DD 2275 AAS HG BOK Total Ap16 5103 5,615 % OfU.S Pr
Slide 6: U.S. Industry Outlook
————— U.S. Industry Outlook m Pricing environment during (vs. prior year periods): 1* 9-mo. FY04 39 Qtr FY04 O Dark meat > +66.57% to $0.317/lb. — +58.73% to $0.339/lb. 0 Wings > +74.08% to $1.06/Ib. +61.78% to $1.12/b. O Breast Meat > +34.53% to $1.92/Ib. +48.40% to $2.38/b. = Export market — recov
Slide 7: Chicken Sales — 3rd Quarter
7 Chicken Sales — 3% Quarter Ginmitions) Actual Proforma FY2004 FY2003 %Change FY2004 —- FY2003 %Change Prepared Foods: Foodsewice $ 4616 $1755 1630% $ 4616 $ 3346 380% Retail 486 433. 12.2% 486 590 17.6% Total Prepared Foods 5102 2188 1332% 5102 3936 29.6% Fresh Chicken Foodsewice 366.1 1243 194.5%
Slide 8: Chicken Sales — 3rd Quarter YTD
7 Chicken Sales — 34% Quarter YTD apemrel Actual Proforma FY2004_ — FY2003 %Change FY2004_ —-FY2003 %Change Prepared Foods: Foodservice $11847 $ 5303 123.4% $ 13156 $1,0026 312% Retail 1572 120.0 __ 31.0% 170.0 1736 _ 21% Total Prepared Foods 1,342.0 6503 106.4% 14856 1,176.2 26.3% Fresh Chicken Foo
Slide 9: Turkey Sales
7 Turkey Sales — Gina) Prepared Foods: Foodservice Retail Total Prepared Foods Fresh Turkey Foodservice Retail Total Fresh Turkey Export and Other Prepared Foods Turkey-Other Total Export and Other Total Turkey Sales 3rd Quarter 3nd Quarter YTD Fy2004-FY2003 %Change =~ FY2D04—-FY2003_%Chamge $189 $
Slide 10: Earnings per Share
——————— Eamings per Share Actuals 3rd Quarter 3rd Quarter Year to Date Proforma 3rd Quarter 3rd Quarter Year to Date FY2004 0.15 0.86 0.15 1.00 $ $ $ $ FY2003 %Change 0.42 0.75 0.08 (0.02) -~64% 15% 88% NM 18
Slide 11: Earnings per Share — Adjusted
7 Eamings per Share — Adjusted Excluding the effects of turkey restructuring and other related charges (see slides 17 & 18) FY2004 FY2003 %Change Adjusted Actuals (*) 3rd Quarter $ 075 $ O42 79% 3rd Quarter Year to Date $ 151 $ O75 101% Adjusted Proforma (*) 3rd Quarter $ 080 $ 008 900% 3rd Quarter
Slide 12: Non-Recurring & Other Items Affecting Fiscal 2003-2004
7 Non-Recurring & Other Items Affecting Fiscal 2003-2004 Gini) ‘Three Months Ended Effect on Net Income July 3, 2004 Non-Reouring _Miscefaneous Net Effect onincome __Emenses, (Loss) Before Tawes, ‘Turkey Restructuring - s & . (Qs 22) (Other Charges - Turkey zs . - ay an Total e A = a ey Ss 39) EPS E
Slide 13: Non-Recurring & Other Items Affecting Fiscal 2003-2004
7 Non-Recurring & Other Items Affecting Fiscal 2003-2004 Gino) Dine onthes Endest Effect on Het income July 3, 2008 Moe-Recmniag Miccotnmeom: Met Efbctomlacome Expenses _ (Loss) Belbre Taxes Recaleteds (eimai) $F - s = 5 ams a) Vinnia 10 as 10 E 10 ‘Testey Resiractariag (22) (22) Omer Charges -Terke
Slide 14: Sales by Segment — 3rd Quarter
7 Sales by Segment — 3rd Quarter (Sima) Actuals Proforma FY2004 FY2003%Change FY2003 %Change Total U.S. Chicken $1,121.1 $435.8 157.3% $ 898.1 24.8% Total Mexico Chicken 90.7 88.6 24% 88.6 2.4% Total Chicken Sales "$1.211.8 "$524.4 131.1% $ 9867 22.8% Total Turkey Sales 66.3 72.3 8.3% 72.3 BM Sale o
Slide 15: Sales by Segment — 3rd Quarter YTD
7 Sales by Segment — 3rd Quarter YTD Ginmore) Actual Proforma FY2004 = FY2003: %Change FY2004 FY2003 %Change Total U.S. Chicken $2933.3 $1,248.4 135.0% $3,2978 $2,5840 276% Total Mexico Chicken 268.6 266.9 06% 268.6 266.9 06% Total Chicken Sales $3,2019 $1,5153 111.3% $3,566.4 $28509 251% Total Turk
Slide 16: Summary Operating Results - Actual
7 Summary Operating Results - Actual (GhMBons) ‘Three Months Ended Nine Months Ended 3QFW3_ 3QFY4 3QFW3_ 3QFY4 Sales: (Chicken and Other Products: United States S 4057 $ 12047 $ 13995 $ 33772 Mexico 93.9 970 2813 2864 ‘Sub Total $5796 $ 13817 $ 16008 $ 35636 Tukey R3 663 2294 2437 Total S 6519 $ 144
Slide 17: Effects of turkey restructuring and other expenses, quarter ended July 3, 2004
L Effects of turkey restructuring and other expenses on the quarter ended July 3, 2004 Tuste Resructurin ara Other Related Charges Asheprted Specific tn Operations Ashita Net Sates 3 Miss : = sans Coste arnt Expemes Costof ates 3 WR a Mon recurring conerion z = = Seling general anal ackrinistrative
Slide 18: Effects of turkey restructuring and other expenses, nine months ended July 3, 2004
F Effects of turkey restructuring and other expenses on the nine months ended July 3, 2004 urhey Restructimimy and Other Related Charges: JsReported ‘Specic i Operations ‘Total Jsidused $s sme S$ -$ 2 - 367208 asms07 - a7 175 saoM a - - - a 190,960 me - me 060 some ae - Prd = $ 374783 _$ 2a $ 71703,
Slide 19: Summary Operating Results - Proforma
7 Summary Operating Results - Proforma Ginmton) Twee Moats Ended Mine Monts Ended SO FYOS 30 FYO4 3a FYO3 30 FYOS Saez Chickes and Other Prodect: Unded States 3 tpsso 5 1.2807 3 34004 5 38379 Mowe 939 70 ‘21.3 a64 ‘Sub Total 3 iss $137 3 Samy $4243 Testey 723 663 ma 2137 Total 3 17012 5 14480 3 3608
Slide 20: Results from Operations — 3rd Quarter
—_———— Results from Operations — 3% Quarter (3 irmatire, except per share pres) EBITDA Reconciiation Nef Income Add. Income Tax Expense (benefit) Interest expense, net Amortization of capitalized inancing costs EBITDA - as reported EBITDA Margn- 25 reported Actual Profoma Fy2004 FY2003 %Change -FY20
Slide 21: Results from Operations — 3rd Quarter - Continued
7 Results from Operations — 3% Quarter - Continued (inne, except per store fires) Actua Proforma Fy2004_FY2003_ %Change_ _ FY2003_ %Change EBITDA Reconcifation Net Income $ 98 $ 174 $ 56 230°«77 34 1470094 183 279 189 359 Amortization of capitalized financing costs o4 03 03 EBITDA - as repated $ 643
Slide 22: Results from Operations — 3rd Quarter YTD
—_———— Results from Operations — 3rd Quarter YTD (8 fnniere, cuepl per shure pres) Actual Proforma Fy200 —FY2003 %Change Fy2004 FY2003 %Change Net Sales $39773 $1,9099 103% $43387 $36507 19% Net Income $5315 310 71% S$ 663 $ (13) 520% EBITDA $2134 $ 1283 65% $77 $ 1523 63% EPS $08 $ O75 15% S$ 100 $
Slide 23: Results from Operations — 3rd Quarter YTD - Continued
7 Results from Operations — 3rd Quarter YTD - Continued (Sinn coceptper share res) Actual Proforma Ey204 § EY2M03 XChange Ey204 EY2003 %Change 3 sus Oo 3 663 5 13) 34a 153 424 03) Interest expense, net 407 2s 450 sas ‘ 954 1020 44 41 3% SF TTS 1523 13.89% Sn% | 417% 10.3 11847% S$ -2AS 1420 105.70%
Slide 24: Long Term Debt
—_———— Long Term Debt Reet terete fly 1D yar face: ALIBOR ps 1757, pl ent ms Avene ee Eotesied 00 mm 2882 mp Reet terete fy —7 yor kore: i201 yee ‘ILIBOR pe 150, pre ent me 00 an Temp Aes everson ene re m2 350 = = zs = as Aekeiol everson eile ae me <0 <o = - = = (Ober mie pnetie va am wwe , is ee.Ar
Slide 25: Other Credit Facilities
7 Other Credit Facilities Cintonmng Jaiy3, 2004 ‘September 27.2003 Foal Facily Fed Fadily Msteily Ovtinaing Amie Tota Materly Outsinating frantic Total UBOR SAE 120% pombe matty 20 - $ 1o1s40 $150,000 oss -_ $ 92938 5 100.000 é 2001 3000 30,000. 2004 $030,000 30,000 S$. $s 131540 $150,000 3 = $ 1993
Slide 26: Capital Expenditures
_————— Capital Expenditures $627 $599 $639 $235 $199 $4.2 $15. " “is Coccaonn HY 0H Cond sais daca. Gaui
Slide 27: Summary Credit Ratios & Other Information
7 Summary Credit Ratios & Other Information FYE 2003 3@2003 3@ 2004 9-Mo FY03 S-Mlo FY04 EBITDA / Interest Expense 4.58x 5.65x 4.24x 5.03x 5.20x Adj. EBITDA / Interest Exp.) - - 7.39x - 6.34x Total Debt / EBITDA 2.41x - - 3.33x 9 1.29x @ Total Debt / Total Capital 48.4% - - 53.3% 41.4% Net Worth (mi