Pilgrim’s Pride Corporation (NYSE: CHX, CHX.A) yesterday announced record net income of $25.3 million, or $.62 per share, for the third fiscal quarter ended June 30, 2001, an $8.1 million increase when compared to net income in the prior year’s third quarter of $17.1 million, or $.41 per share. The Company also announced record net sales for the third fiscal quarter ended June 30, 2001 of $645.8 million, a 64.8% increase when compared to the $392.0 million for the same period last year, with the increase resulting primarily from the acquisition of WLR Foods, Inc., which was effective January 27, 2001.
For the first nine months of fiscal 2001, the Company reported net income of $28.2 million, or $.69 per share, a $12.8 million decrease when compared to the prior fiscal year’s first nine months net income of $41.0 million, or $.99 per share. Net sales for the first nine months of fiscal 2001 were $1.6 billion, a 40.5% increase when compared to $1.1 billion for the same period last year, with the increase resulting primarily from the acquisition of WLR Foods, Inc., which was effective January 27, 2001.
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“Our third fiscal quarter results were the best quarterly results ever in our Company’s history. This quarter was most significantly affected by the increased volumes generated by the WLR acquisition and our Mexico operations, and by higher overall prices for chicken products in the U.S. While the pricing situation in Mexico has improved over this year’s second fiscal quarter, pricing levels in Mexico remain below year ago levels. Additionally, we are encouraged that our newly acquired Eastern Division was accretive to earnings this quarter and while our integration of the former WLR operations continues, we are beginning to realize the anticipated synergies contemplated when making this acquisition,” stated David Van Hoose, Chief Executive Officer, President and Chief Operating Officer for the Company. Mr. Van Hoose further stated that, “our overall long-term business strategy is consistent and continuing and we anticipate that we will continue to be in position to take advantage of opportunities as they arise in the market place.”
Pilgrim’s Pride Corporation is currently the second largest poultry company in the United States; the third largest in chicken and the fourth largest in turkey, and second largest chicken company in Mexico. Pilgrim’s Pride employs more than 22,500 persons and operates processing and further processing plants, distribution centers, hatcheries and feed mills in Texas, Arkansas, Arizona, North Carolina, Pennsylvania, Oklahoma, Virginia and West Virginia and Mexico.
Products are sold under the “Pilgrim’s Pride®” and “Wampler Foods®” labels to foodservice, retail and frozen entree customers. The Company’s primary distribution is through retailers and restaurants throughout the United States and in the Northern and Central regions of Mexico and to the foodservice industry nation-wide in both countries.
Statements contained in this press release that state the intentions, hopes, beliefs, anticipations, expectations or predictions of the future of Pilgrim’s Pride Corporation and its management are forward-looking statements. It is important to note that the actual results could differ materially from those projected in such forward-looking statements. For example, factors that could cause actual results to differ materially from those projected in such forward-looking statements include: changes in the commodity prices of feed ingredients, chicken and turkey; the Company’s indebtedness; risks associated with the Company’s foreign operations, including currency exchange rate fluctuations, trade barriers, exchange controls and expropriation; the impact of current and future laws and regulations; risks associated with the Company’s integration of WLR Foods, Inc. into the Company; and the other risks described in the Company’s SEC filings.
For further information:
Richard A. Cogdill
Chief Financial Officer
903/855-4205
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By GlobalData PILGRIM’S PRIDE CORPORATION
Consolidated Statements of Income
[In thousands, except share and per share amounts]
Three Months Ended June 30, 2001 July 1, 2000
Net Sales $645,836 $391,979
Costs and Expenses:
Cost of sales 570,211 345,314
Selling, general and administrative 30,139 20,316
600,350 365,630
Operating income 45,486 26,349
Other Expenses [Income]:
Interest expense, net 10,014 4,967
Foreign exchange [gain] loss [602] 598
Miscellaneous, net 1,751 465
Total other expenses, net 11,163 6,030
Income Before Income Taxes 34,323 20,319
Income Tax Expense 9,056 3,175
Net Income $25,267 $17,144
Net Income per Common Share – Basic and Diluted $ 0.62 $ 0.41
Dividends Declared per Share $.015 $.015
Weighted Average Shares Outstanding 41,112,679 41,274,680
Nine Months Ended June 30, 2001 July 1, 2000
Net Sales $1,573,461 $1,120,064
Costs and Expenses:
Cost of sales 1,421,454 993,894
Selling, general and administrative 88,582 61,317
1,510,036 1,055,211
Operating income 63,425 64,853
Other Expenses [Income]:
Interest expense, net 21,239 13,569
Foreign exchange[gain] loss [439] 532
Miscellaneous, net 1,348 [252]
Total other expenses, net 22,148 13,849
Income Before Income Taxes 41,277 51,004
Income Tax Expense 13,075 9,979
Net Income $28,202 $41,025
Net Income per Common Share – Basic and Diluted $0.69 $0.99
Dividends Declared per Share $.045 $ .045
Weighted Average Shares Outstanding 41,112,679 41,347,413
PILGRIM’S PRIDE CORPORATION
Condensed Consolidated Balance Sheets
[In thousands]
June 30, September 30,
2001 2000
ASSETS
Total Current Assets $457,990 $268,970
Other Assets 20,047 18,576
Property, Plant and Equipment, net 726,783 417,874
Total Assets $1,204,820 $705,420
LIABILITIES AND STOCKHOLDERS’ EQUITY
Total Current Liabilities $280,796 $144,439
Long-Term Debt, Less Current Maturities 444,125 165,037
Deferred Income Taxes 110,531 52,496
Minority Interest in Subsidiary 889 889
Total Stockholders’ Equity 368,479 342,559
Total Liabilities and Stockholders’ Equity $1,204,820 $705,420
PILGRIM’S PRIDE CORPORATION
Condensed Consolidated Statements of Cash Flows
[In thousands]
Nine Months Ended June 30, 2001 July 1, 2000
Cash Provided by Operating Activities $17,252 $61,706
Investing Activities:
Acquisitions of property, plant and equipment [87,640] [56,933]
Business acquisitions [239,539] —
Proceeds from property disposals 1,622 2,202
Other, net 3,040 [6,996]
Cash Used in Investing Activities [322,517] [61,727]
Financing Activities:
Borrowings for acquisition 285,070 —
Repayment of WLR Foods, Inc. debt [45,531] —
Net borrowings on notes payable 54,000 —
Net payments on long-term debt [5,860] [10,818]
Purchase of treasury stock — [1,314]
Cash dividends paid [1,854] [1,860]
Cash Provided by Financing Activities 285,825 [13,992]
Effect of exchange rate changes on cash
and cash equivalents 147 12
Decrease in cash and cash equivalents $[19,293] $[14,001]
