Slide 1: Pilgrim's Pride Corporation Financial Results for Second Quarter Ended June 24, 2012
1 Pilgrim’s Pride Corporation Financial Results for Second Quarter Ended June 24, 2012
Slide 2: Cautionary Notes and Forward-Looking Statements
Cautionary Notes and 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” an
Slide 3: Second Quarter 2012 Financial Review
Second Quarter 2012 Financial Review 3 Main Indicators ($MM) 2Q11 2Q12 Net Revenue 1,922.7 1,974.5 Gross (Loss) Profit (46.2) 144.1 SG&A 52.5 44.8 EBITDA (US GAAP) (47.3) 125.1 Net Income (128.1) 69.4 Net Income per Share (0.60) 0.27 Top line sales increased 2.7% compared to 2011 with lower volume
Slide 4: Second Quarter 2012 – Net Debt
Second Quarter 2012 – Net Debt Our Net Debt reached $1.18B at the end of the 2Q 12; Operating cash flows contributed to a $54MM reduction The increase in the price of Corn and Soy contributed to inventory balances Our AR and AP went down $25MM “Others” include the sale of the Pittsburg hea
Slide 5: Chicken Prices
Chicken Prices pilgrims USDA Boneless/Skinless Breast NE USDA 12 City Whole Broiler pont 2012 ns Svearaverage USDA Leg Quarters NE USDA Whole Wings NE 5 rn ponds sear average ss Year Average
Slide 6: Revenue Drivers
Revenue Drivers • Breast meat has declined 17% in total share of WOG revenue since 2004. Tenders have dropped modestly during the same period. • Rendered parts, wings and leg quarters have all gained in relative value during the same period. 6
Slide 7: Exports
Exports • 2011 exports were up 3.3% setting a new record at just under 7 billion pounds. US production was up only .8% in 2011. • Despite lower production, exports are forecasted to set a new record at just under 7.1 billion pounds in 2012. Source: USDA-FAS 7
Slide 8: Cold Storage
8 Cold Storage • Total chicken in cold storage is down 14% from July 2011 due to sharply lower production levels and strong exports during Q1 & Q2. • At 647 million pounds, total inventories represent approximately one week of total US production. Source: USDA-NASS
Slide 9: Feed Costs
Feed Costs Source: CME • Corn futures have doubled since summer of 2010 as poor weather and higher global demand have lowered US corn ending stocks. • Soybean meal futures are trading at all time highs due to large crop losses in South America combined with potential losses in the US. 9
Slide 10: Capital Expenditures
2011 Capital expenditure original budget = $175 million 2011 Actual = $136 million 2012 Estimate <= $120 million Capital Expenditures 10 New Capacity/ Efficiency: 9.2MM Maintenance: 9MM New Sales/ Products: 2.6MM
Slide 11: Liquidity
Liquidity 11 Sources of Liquidity Q1 2012 Q2 2012 Q1 2012 Q2 2012 Q1 2012 Q2 2012 Cash and cash equivalents - - - - 47.6 49.2 Short-term investments in available-for-sale securities - - - - 0.2 0.2 Borrowing arrangements: Exit Credit Facility 700 700 192.6 161.5 439.2 476.2 ING Credit Facility 43.7
Slide 12: IR Contact
IR Contact Investor Relations: Rosemary Geelan E-mail: rosemary.geelan@pilgrims.com Phone: +1 (970) 506-8192 Address: 1770 Promontory Circle Greeley, CO 80634 USA Website: www.pilgrims.com 12