Pilgrim's Pride Corporation · NASDAQ:PPC
Pilgrim's Pride — Q1 FY2007 Earnings Presentation
16 slides from Pilgrim's Pride's earnings presentation, Jan 30, 2007
Slide 1: Fiscal 2007 1st Quarter Results
Pilgrim’s Pride Corporation Fiscal 2007 1st Quarter Results January 30, 2007
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, anticipation, expectations or predictions of the future of Pilgrim's Pride Corporation and its management, including as ta the expected benefits and synergies
Slide 3: Positive Supply and Demand Dynamics
Positive Supply and Demand Dynamics ... Weekly Broiler Slaughtered (year-over-year growth) Pullets Placed (G-month rolling average y-o-y growth) 150% 100% 50% 09 | bgt = (10.0%) ; (0.6%) (0.5%) (0.6%) oe (15.0%) - $ © © & S H Sept-05 04-06 Now os Dec.06 FF HF PP gs s Source: USDA, Source: USDA, Cold
Slide 4: U.S. Industry Outlook
U.S. Industry Outlook . (1 ' r 1 ft Quarter Ended! | Spot Price | _%Change from Quarter Ende graor2006 semoros | tizsrnor_—s|}~———yaoran0e 1279072006 GA Dock $0.70 | $0.72 1 42.9% +43% 1 i Leg Quarters $0.36 $0.30 H $0.35 ! 28% 6.7% 1 i Breast Meat $1.39 $1.14 \ $1.41 1 1.4% 428.7% Source: Urner Ber
Slide 5: Historical Corn Prices
Historical Corn Prices — Lighter than expected 2006 U.S. corn harvest and weak US/AU wheat harvest — Multiple chicken processors responded to higher corn costs by reducing production ‘Average Prices Com Beton) -Year Avg 2.49 soo -Year Avg $2.36 lW0.Year Avg $2.31 $3.74 ou fi az ral sz.o0 } S150 1.00
Slide 6: Results from Operations
Results from Operations (8 inrrillions, except per share figures) 1°" Quarter FY2007 FY2006 %Change EPS $ (0.13) $ 0.39 133.3% Net Sales $ 1,337.1 $ 1,343.8 05% Net (Loss) Income $ (8.7) $ 25.7 133.9% EBITDA $ 30.1 $ 74.9 -59.8% EBITDA Reconciliation Net {Loss} Income $ (8.7) $ 25.7 Add: Income Tax
Slide 7: Sales by Segment
Sales by Segment (in millions) Chicken: United States Mexico Total Chicken Sales Total Turkey Sales Sale of Other Products: United States Mexico Total Sale of Other Products Total Net Sales 1° Quarter FY2007 Fy2006 % Change $1,031.0 § 1,034.2 03% 1229 92.4 33.0% $1,1539 $ 1,126.6 24% $ 519 § 61.9 -1
Slide 8: Summary Operating Results
Summary Operating Results (Ginmitons) 1° Quarter FY2007 FY2006 Operating (Loss) Income: Chicken: United States $ (11.4) $ 539 Mexico 13 1) Total Chicken $ (10.1) $ 468 Total Turkey 25 (56) Other Products: United States $ $ Mexico Total Other Products GAAP Operating (Loss) Income $ (2.9) $46.2 Operat
Slide 9: Long-Term Debt
Long—Term Debt Fiscal Quarter Ending Proforma Fiscal Quarter Ending (Sin thousands) December 30, 2008 Det ember 30, 200601 Final Facilty Final Facilty Maturity Outstanding Available Total Maturity Outstanding Available Total Senior unsecured notes, interest at 958% 2011 —«§ 799,495 $ 299495 2011 § «
Slide 10: Other Credit Facilities
Other Credit Facilities Fiscal Quatter Ending) Proforma Fiscal Quarter Ending Gin thoumreis} December 30, 2006 December 30, 2008 (1) Final Facity Final Feciity Maturity Outstanding Available sta Meturty Outstending _Avaleble srt Domestic Rewling Creait Faciity ft UBOR plus 0.875% 2a og 5 stems 180,0
Slide 11: Summary Credit Ratios & Other Information
Summary Credit Ratios & Other Information FY2006 LTM 12/30/06 1Q FY06 1Q FYO7 EBITDA‘! Interest Expense (*} 3.37x 2.06x 8.86x 2.39x Adj. EBITDA! Interest Exp. [' 3.53x 2.20x 8.86x 2.39x Total Debt/ EBITDA (*} 4.13% 7.80% - - Net Debt/ EBITDA (*} 2.99% 6.21% - - Total Debt/ Total Capital 33.6% 39.3%
Slide 12: Capital Expenditures
Capital Expenditures Million $ BE Maintenance/Other $143.9 BB Efficiency/Expansion $139.4 140 120 $64.1 100 i: +) 60 $39.4 $798 a $174 2 $223 a 10 FPO? FY06 LTm 1273006 12 = *The Company projects FY2007 capital expenditures of approximately $150 - $175 million
Slide 13: Appendix
Appendix
Slide 14: Appendix A - Reconciliation
Appendix A - Reconciliation Summary Credit Ratios & Other Information EBMDA Reconciliations LTMEnding —_LTM Ending FY2006 12131105 12130106 Net Income $ (34,232) $ 243,086 $ (68,646) Add Income Tax Expense (2,085) 117.167 (18.811) Interest expense, net 40,553 40,156 44,710 Depreciation and amortizat
Slide 15: Appendix B - Reconciliation
Appendix B - Reconciliation Adjusted LTM EBITDA 2q2005 3Q2005 4Q2005 192006 LTM Ending Actual Actual Actual Actual 1281005 Netincame $ 56989 $ 85952 $ 74728 $ 25678 |$ 242147 Addl Incame Tax Expense (lenefit) 34,204 38,324 34616 10,962 118,106 Interest expense, net 9318 12,322 10.068 8448 40,156 Dep
Slide 16: Appendix C - Reconciliation
Appendix C - Reconciliation Adjusted LTM EBITDA 22006 3q2006 4q2006 192007 [ LTMEnding Actual Actual Actual Actual 1273006 Netincame (Loss) $ (81,954) $ (20473) $ (7483) $ (736) |$ (68,648) Addl Income Tax Expense (benefit) (15,147) (17,601) 19,601 (6764) (18.811) Interest expense, net 10,057 11,468