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 UNITED STATES 
 SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)
x
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended April 2, 2005

OR

¨
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to

Commission File number 1-9273

PILGRIM’S PRIDE CORPORATION
(Exact name of registrant as specified in its charter)

Delaware
  
75-1285071
(State or other jurisdiction of
  
(I.R.S. Employer
incorporation or organization)
  
Identification No.)
     
110 South Texas, Pittsburg, TX
  
75686-0093
(Address of principal executive offices)
  
(Zip code)
     
(903) 855-1000
(Registrant’s telephone number, including area code)

Not Applicable
(Former name, former address and former fiscal year, if changed since last report.)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No     ¨

Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). Yes x No ¨

Number of shares outstanding of the issuer’s common stock, as of  April 22, 2005, was 66,555,733.
 
 

 
PILGRIM’S PRIDE CORPORATION AND SUBSIDIARIES
 
PART I. FINANCIAL INFORMATION
 
Item 1.
Financial Statements (Unaudited)
   
April 2, 2005 and October 2, 2004
   
    Six months ended April 2, 2005 and April 3, 2004
   
Three months and six months ended April 2, 2005 and April 3, 2004
   
 
Management’s Discussion and Analysis of Financial Condition and Results of Operations
 
Quantitative and Qualitative Disclosures about Market Risk
 
Controls and Procedures
     
PART II. OTHER INFORMATION
 
Legal Proceedings
 
Submission of Matters to a Vote of Security Holders
 
Exhibits
 
 

PART I. FINANCIAL INFORMATION
  
Item 1. Financial Statements
  
Pilgrim's Pride Corporation
  
 
(Unaudited)
  
   
 April 2, 2005
  
 October 2, 2004
  
   
 (In thousands, except share and per share data)
  
Assets
            
Current Assets:
            
Cash and cash equivalents
  
$
147,837
  
$
38,165
  
Trade accounts and other receivables, less allowance for doubtful accounts
    
291,089
    
324,187
  
Inventories
    
571,650
    
609,997
  
Current deferred income taxes
    
6,577
    
6,577
  
Other current assets
   
40,508
    
38,302
  
Total Current Assets
    
1,057,661
    
1,017,228
  
               
Other Assets
    
49,618
    
50,086
  
Property, Plant and Equipment:
              
Land
    
52,385
    
52,980
  
Buildings, machinery and equipment
    
1,581,502
    
1,558,536
  
Autos and trucks
    
52,863
    
55,693
  
Construction-in-progress
    
58,486
    
29,086
  
     
1,745,236
    
1,696,295
  
Less accumulated depreciation
    
(582,979
)
  
(517,620
)
     
1,162,257
    
1,178,675
  
   
$
2,269,536
  
$
2,245,989
  
Liabilities and Stockholders’ Equity
              
Current Liabilities:
              
Accounts payable
  
$
220,715
  
$
314,565
  
Accrued expenses
    
296,103
    
256,064
  
Income taxes payable
    
40,091
    
54,445
  
Current maturities of long-term debt
    
8,501
    
8,428
  
Total Current Liabilities
    
565,410
    
633,502
  
               
Long-Term Debt, Less Current Maturities
    
523,404
    
535,866
  
Deferred Income Taxes
    
153,286
    
152,455
  
Minority Interest in Subsidiary
    
1,320
    
1,210
  
Commitments and Contingencies
    
--
    
--
  
               
Stockholders’ Equity:
              
Preferred stock, $.01 par value, 5,000,000 authorized shares; none issued
    
--
    
--
  
Common stock - $.01 par value, 160,000,000 authorized shares; 66,826,833 issued
    
668
    
668
  
Additional paid-in capital
    
431,662
    
431,662
  
Retained earnings
    
595,442
    
492,542
  
Accumulated other comprehensive loss
    
(88
)
  
(348
)
Less treasury stock, 271,100 shares
    
(1,568
)
  
(1,568
)
Total Stockholders’ Equity
    
1,026,116
    
922,956
  
   
$
2,269,536
  
$
2,245,989
  

See notes to consolidated financial statements


Pilgrim’s Pride Corporation and Subsidiaries
(Unaudited)
  
           
   
Three Months Ended
  
Six Months Ended
  
   
April 2, 2005
  
April 3. 2004
  
April 2, 2005
(26 Weeks)
  
April 3, 2004
(27 Weeks)
  
   
(in thousands, except share and per share data)
  
Net Sales
  
$
1,375,321
  
$
1,384,908
  
$
2,743,568
  
$
2,429,275
  
Costs and Expenses:
                          
Cost of sales
    
1,216,837
    
1,261,513
    
2,429,673
    
2,228,840
  
Selling, general and administrative
    
69,529
    
61,884
    
133,925
    
108,116
  
                           
     
1,286,366
    
1,323,397
    
2,563,598
    
2,336,956
  
                           
Operating income
   
88,955
    
61,511
    
179,970
    
92,319
  
                           
Other Expense (Income):
                          
Interest expense, net
    
9,318
    
13,524
    
21,542
    
25,968
  
Foreign exchange (gain) loss
    
(213
)
  
185
    
(326
)
  
263
  
Miscellaneous, net
    
(10,733
)
  
1,257
    
(11,748
)
  
936
  
     
(1,638
)
  
14,966
    
9,468
    
27,167