Attached files
| file | filename |
|---|---|
| 8-K - TYSON FOODS, INC. FORM 8-K 11/23/09 - TYSON FOODS, INC. | form8k_112309.htm |
Media
Contact: Gary Mickelson, 479-290-6111
Investor
Contact: Ruth Ann Wisener, 479-290-4235
TYSON
REPORTS FOURTH QUARTER AND FISCAL YEAR 2009 RESULTS
|
●
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4th
quarter 2009 EPS was ($1.22), which included a non-cash goodwill
impairment charge in our Beef segment of $560 million, or $1.50 per
share.
|
||
|
●
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4th
quarter 2009 EPS excluding the goodwill impairment charge was $0.28, as
compared to $0.13 last year
|
||
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●
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Excluding
the goodwill impairment charge, all operating segments were profitable for
the quarter:
|
||
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●
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Chicken
operating income $32 million, or 1.2% of sales
|
||
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●
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Beef
operating income $120 million, or 4.0% of sales
|
||
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●
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Pork
operating income $48 million, or 5.5% of sales
|
||
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●
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Prepared
Foods operating income $39 million, or 5.3% of sales
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||
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●
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Operations
generated more than $1.0 billion of cash flows in fiscal
2009
|
||
Springdale, Arkansas – November 23,
2009 - Tyson Foods, Inc. (NYSE: TSN), today reported the following
results:
|
(in
millions, except per share data)
|
Fourth
Quarter
|
12
Months
|
||||||||||||||
|
2009
|
2008
|
2009
|
2008
|
|||||||||||||
|
Sales
|
$ | 7,214 | $ | 7,201 | $ | 26,704 | $ | 26,862 | ||||||||
|
Operating
Income (Loss)
|
(322 | ) | 138 | (215 | ) | 331 | ||||||||||
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Income
(Loss) from Continuing Operations
|
(455 | ) | 45 | (536 | ) | 86 | ||||||||||
|
Income
(Loss) from Discontinued Operation
|
- | 3 | (1 | ) | - | |||||||||||
|
Net
Income (Loss)
|
$ | (455 | ) | $ | 48 | $ | (537 | ) | $ | 86 | ||||||
|
Earnings
(Loss) Per Diluted Share:
|
||||||||||||||||
|
Earnings
(Loss) from Continuing Operations
|
$ | (1.22 | ) | $ | 0.12 | $ | (1.44 | ) | $ | 0.24 | ||||||
|
Earnings
from Discontinued Operation
|
- | 0.01 | - | - | ||||||||||||
|
Net
Income (Loss)
|
$ | (1.22 | ) | $ | 0.13 | $ | (1.44 | ) | $ | 0.24 | ||||||
|
Goodwill
Impairment Charge
|
(1.50 | ) | - | (1.50 | ) | - | ||||||||||
|
Net
Income excluding Goodwill Impairment Charge
|
$ | 0.28 | $ | 0.13 | $ | 0.06 | $ | 0.24 | ||||||||
|
●
|
Fourth
Quarter and 12 Months Fiscal 2009 – Included $560 million, or $1.50 per
share, related to a non-cash goodwill impairment charge recorded in our
Beef segment. The recent disruptions in global credit and other financial
markets and deterioration of economic conditions resulted in a significant
increase in our discount rate used in the goodwill valuation, which led to
partial impairment of our Beef segment’s goodwill.
|
|
|
●
|
12
Months Fiscal 2009 – Included $15 million, or $0.02 per diluted share, of
pretax charges related to a plant closing.
|
|
|
●
|
12
Months Fiscal 2009 – Loss from discontinued operation included a $10
million, or $0.02 per diluted share, of pretax loss on sale of Lakeside
Farm Industries.
|
“We have
made tremendous progress in a relatively short period of time,” said Leland
Tollett, who on Thursday stepped down after serving 11 months as interim
president and chief executive officer of Tyson Foods. “I have
complete confidence that the new management team will have a positive impact as
the company moves forward.”
“Our
operating cash flow exceeded $1 billion in fiscal 2009, which helped us make
progress on our debt level,” said Donnie Smith, Tyson’s new president and chief
executive officer. “All operating segments were profitable in the
fourth quarter, with Beef, Pork and Prepared Foods within or above historical
operating margin ranges, excluding the goodwill impairment. These
three segments are operating very well, and measures are in place for more
improvement in our Chicken segment. The team knows what to do, and
now it’s a matter of execution.”
“Fiscal
2010 should be a much better year,” according to Jim Lochner, Tyson’s new chief
operating officer. “We think Beef, Pork and Prepared Foods will
continue with a solid performance, and we expect the steps we’ve taken to
improve Chicken will manifest themselves. Also, USDA data point to
lower overall protein supplies, and there is potential for good demand
improvement as the global economy recovers.”
Our
accounting cycle resulted in a 14-week fourth quarter and 53-week year in fiscal
2009, as compared to a 13-week fourth quarter and 52-week year in fiscal
2008.
TYSON
FOODS, INC.
November
23, 2009
Page 2 of
10
Segment Performance Overview
(in millions)
|
Sales
|
||||||||||||||||||||||||||||||||
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(for
the fourth quarter and 12 months ended October 3, 2009, and September 27,
2008)
|
||||||||||||||||||||||||||||||||
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Fourth
Quarter
|
12
Months
|
|||||||||||||||||||||||||||||||
|
Volume
|
Avg.
Price
|
Volume
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Avg.
Price
|
|||||||||||||||||||||||||||||
|
2009
|
2008
|
Change
|
Change
|
2009
|
2008
|
Change
|
Change
|
|||||||||||||||||||||||||
|
Chicken
|
$ | 2,649 | $ | 2,383 | 10.4 | % | 0.6 | % | 9,660 | $ | 8,900 | 8.8 | % | (0.2 | )% | |||||||||||||||||
|
Beef
|
2,967 | 3,101 | 14.0 | % | (16.0 | )% | 10,782 | 11,664 | 0.5 | % | (8.0 | )% | ||||||||||||||||||||
|
Pork
|
865 | 1,000 | 13.4 | % | (23.8 | )% | 3,426 | 3,587 | 1.7 | % | (6.1 | )% | ||||||||||||||||||||
|
Prepared
Foods
|
733 | 717 | 11.7 | % | (8.4 | )% | 2,836 | 2,711 | 5.2 | % | (0.6 | )% | ||||||||||||||||||||
|
Total
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$ | 7,214 | $ | 7,201 | 12.2 | % | (10.7 | )% | $ | 26,704 | $ | 26,862 | 4.4 | % | (4.8 | )% | ||||||||||||||||
|
Operating
Income (Loss)
|
||||||||||||||||||||||||||||||||
|
(for
the fourth quarter and 12 months ended October 3, 2009, and September 27,
2008)
|
||||||||||||||||||||||||||||||||
|
Fourth
Quarter
|
12
Months
|
|||||||||||||||||||||||||||||||
|
Operating
Margin
|
Operating
Margin
|
|||||||||||||||||||||||||||||||
|
2009
|
2008
|
2009
|
2008
|
2009
|
2008
|
2009
|
2008
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|||||||||||||||||||||||||
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Chicken
|
$ | 32 | $ | (91 | ) | 1.2 | % | (3.8 | )% | $ | (157 | ) | $ | (118 | ) | (1.6 | )% | (1.3 | )% | |||||||||||||
|
Beef
|
(440 | ) | 159 | (14.8 | )% | 5.1 | % | (346 | ) | 106 | (3.2 | )% | 0.9 | % | ||||||||||||||||||
|
Pork
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48 | 75 | 5.5 | % | 7.5 | % | 160 | 280 | 4.7 | % | 7.8 | % | ||||||||||||||||||||
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Prepared
Foods
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39 | (5 | ) | 5.3 | % | (0.7 | )% | 133 | 63 | 4.7 | % | 2.3 | % | |||||||||||||||||||
|
Other
|
(1 | ) | - | n/a | n/a | (5 | ) | - | n/a | n/a | ||||||||||||||||||||||
|
Total
|
$ | (322 | ) | $ | 138 | (4.5 | )% | 1.9 | % | $ | (215 | ) | $ | 331 | (0.8 | )% | 1.2 | % | ||||||||||||||
Operating
results excluding $560 million goodwill impairment charge:
|
Beef
|
$ | 120 | $ | 159 | 4.0 | % | 5.1 | % | $ | 214 | $ | 106 | 2.0 | % | 0.9 | % | ||||||||||||||||
|
Total
|
$ | 238 | $ | 138 | 3.3 | % | 1.9 | % | $ | 345 | $ | 331 | 1.3 | % | 1.2 | % |
Fiscal 2010
Outlook
|
Segments:
|
|
Chicken – At the
end of fiscal 2009, industry pullet placements were down 5-6% as a result
of weaker demand. However, we expect demand will improve as we get further
into fiscal 2010, and we expect the pricing environment to improve aided
by cold storage inventories which are down relative to the levels we have
seen over the last several years. We also currently expect to see grain
costs down as compared to fiscal 2009. Additionally, we will continue to
focus on making operational improvements to help maximize our
margins.
|
|
Beef – While we
expect a reduction in cattle supplies of 1-2% in fiscal 2010, we do not
expect a significant change in the fundamentals of our Beef business as it
relates to fiscal 2009. We expect adequate supplies to operate our plants.
We will manage our spreads by maximizing our revenues through product mix,
minimizing our operating costs, while keeping our focus on quality and
customer service.
|
|
Pork – We
expect to see a gradual decline in hog supplies through the first half of
fiscal 2010, which will accelerate into the second half of fiscal 2010,
resulting in industry slaughter slightly higher than 2007 (or roughly 4%
less than fiscal 2009). However, we still believe we will have adequate
supplies in the regions in which we operate. We will manage our spreads by
continuing to control our costs and maximizing our
revenues.
|
|
Prepared Foods
– Raw material costs will likely increase in fiscal 2010, but we have made
some changes in our sales contracts that move us further away from fixed
price contracts toward formula pricing, which will better enable us to
absorb rising raw material costs. With the changes we have made with our
sales contracts and the operational efficiencies we made during fiscal
2009, we expect strong results in fiscal 2010.
|
|
Interest Expense –
approximately $320 million
|
|
Effective Tax Rate –
approximately 38%
|
|
Capital Spending –
approximately $600 million
|
TYSON
FOODS, INC.
November
23, 2009
Page 3 of
10
Segment Performance
Review
Chicken
|
in
millions
|
||||||||||||||||||||||||
|
Three
Months Ended
|
12
Months Ended
|
|||||||||||||||||||||||
|
October
3,
|
Sept.
27,
|
October
3,
|
Sept.
27,
|
|||||||||||||||||||||
|
2009
|
2008
|
Change
|
2009
|
2008
|
Change
|
|||||||||||||||||||
|
Sales
|
$ | 2,649 | $ | 2,383 | $ | 266 | $ | 9,660 | $ | 8,900 | $ | 760 | ||||||||||||
|
Sales
Volume Change
|
10.4 | % | 8.8 | % | ||||||||||||||||||||
|
Avg.
Sales Price Change
|
0.6 | % | (0.2 | )% | ||||||||||||||||||||
|
Operating
Income (Loss)
|
$ | 32 | $ | (91 | ) | $ | 123 | $ | (157 | ) | $ | (118 | ) | $ | (39 | ) | ||||||||
|
Operating
Margin
|
1.2 | % | (3.8 | )% | (1.6 | )% | (1.3 | )% | ||||||||||||||||
|
12
months of fiscal 2008
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||
|
●
|
Included
$26 million of charges related to: plant closings; impairments of
unimproved real property and software; and
severance.
|
|
|
Fourth
quarter and 12 months – Fiscal 2009 vs Fiscal 2008
|
|||
|
●
|
Sales
Volume – The increase in sales volume for both the fourth quarter and 12
months of fiscal 2009 was due to the extra week in fiscal 2009, as well as
inventory reductions and sales volume related to recent
acquisitions.
|
||
|
●
|
Average
Sales Price – The inventory reductions and recent acquisitions lowered the
average sales price, as most of the inventory reduction related to
commodity products shipped internationally and sales volume from recent
acquisitions was on lower priced products.
|
||
|
●
|
Operating
Income (Loss) –
|
||
|
●
|
Operational
Improvements – Operating results were positively impacted by operational
improvements, which included: yield, mix and live production performance
improvements; additional processing flexibility; and reduced interplant
product movement.
|
||
|
●
|
Derivative
Activities – Operating results included the following amounts for
commodity risk management activities related to grain and energy
purchases. These amounts exclude the impact from related physical purchase
transactions, which impact current and future period operating
results.
|
||
|
Income/(Loss)
- in millions
|
Qtr
|
YTD
|
||||||
|
2009
|
$ | (9 | ) | $ | (257 | ) | ||
|
2008
|
65 | 206 | ||||||
|
Decline
|
$ | (74 | ) | $ | (463 | ) | ||
|
●
|
Grain
Costs – As compared to the same periods of fiscal 2008, operating results
were positively impacted in the fourth quarter and 12 months of fiscal
2009 by a decrease in grain costs of $109 million and $28 million,
respectively.
|
||
|
●
|
SG&A
Expenses – We reduced our selling, general and administrative expenses
during fiscal 2009 by approximately $37
million.
|
TYSON
FOODS, INC.
November
23, 2009
Page 4 of
10
Beef
|
in
millions
|
||||||||||||||||||||||||
|
Three
Months Ended
|
12
Months Ended
|
|||||||||||||||||||||||
|
October
3,
|
Sept.
27,
|
October
3,
|
Sept.
27,
|
|||||||||||||||||||||
|
2009
|
2008
|
Change
|
2009
|
2008
|
Change
|
|||||||||||||||||||
|
Sales
|
$ | 2,967 | $ | 3,101 | $ | (134 | ) | $ | 10,782 | $ | 11,664 | $ | (882 | ) | ||||||||||
|
Sales
Volume Change
|
14.0 | % | 0.5 | % | ||||||||||||||||||||
|
Avg.
Sales Price Change
|
(16.0 | )% | (8.0 | )% | ||||||||||||||||||||
|
Operating
Income (Loss)
|
$ | (440 | ) | $ | 159 | $ | (599 | ) | $ | (346 | ) | $ | 106 | $ | (452 | ) | ||||||||
|
Operating
Margin
|
(14.8 | )% | 5.1 | % | (3.2 | )% | 0.9 | % | ||||||||||||||||
|
Operating
results excluding $560 million goodwill impairment charge:
|
||||||||||||||||||||||||
|
Operating
Income
|
$ | 120 | $ | 159 | $ | (39 | ) | $ | 214 | $ | 106 | $ | 108 | |||||||||||
|
Operating
Margin
|
4.0 | % | 5.1 | % | 2.0 | % | 0.9 | % | ||||||||||||||||
|
Fourth
quarter and 12 months of fiscal 2009
|
||
|
●
|
Included
$560 million non-cash charge related to the impairment of
goodwill.
|
|
|
Fourth
quarter of fiscal 2008
|
||
|
●
|
Included
$8 million charge related to the impairment of an intangible
asset.
|
|
|
12
months of fiscal 2008
|
||
|
●
|
Included
$35 million of charges related to: plant restructuring, impairments of
packaging equipment and intangible assets, and
severance.
|
|
|
Fourth
quarter and 12 months – Fiscal 2009 vs Fiscal 2008
|
|||
|
●
|
Sales
and Operating Income (Loss) –
|
||
|
●
|
While
our average sales prices have decreased as compared to the same periods in
2008, we have still maintained a margin as the average live costs
decreased in line with the drop in our average sales price. Excluding the
$560 million non-cash goodwill impairment charge, our operating margins
were 4.0% and 2.0%, respectively, for the fourth quarter and 12 months of
fiscal 2009. The fourth quarter operating margin exceeded our historical
normalized operating margin range, while the 12 months of fiscal 2009 was
within the historical normalized operating margin range, which is
1.5-3.0%.
|
||
|
●
|
Derivative
Activities – Operating results included the following amounts for
commodity risk management activities related to forward futures contracts
for live cattle. These amounts exclude the impact from related physical
sale and purchase transactions, which impact current and future period
operating results.
|
||
|
Income
- in millions
|
Qtr
|
YTD
|
||||||
|
2009
|
$ | 5 | $ | 102 | ||||
|
2008
|
73 | 53 | ||||||
|
Improvement
/ (Decline)
|
$ | (68 | ) | $ | 49 | |||
TYSON
FOODS, INC.
November
23, 2009
Page 5 of
10
Pork
|
in
millions
|
||||||||||||||||||||||||
|
Three
Months Ended
|
12
Months Ended
|
|||||||||||||||||||||||
|
October
3,
|
Sept.
27,
|
October
3,
|
Sept.
27,
|
|||||||||||||||||||||
|
2009
|
2008
|
Change
|
2009
|
2008
|
Change
|
|||||||||||||||||||
|
Sales
|
$ | 865 | $ | 1,000 | $ | (135 | ) | $ | 3,426 | $ | 3,587 | $ | (161 | ) | ||||||||||
|
Sales
Volume Change
|
13.4 | % | 1.7 | % | ||||||||||||||||||||
|
Avg.
Sales Price Change
|
(23.8 | )% | (6.1 | )% | ||||||||||||||||||||
|
Operating
Income
|
$ | 48 | $ | 75 | $ | (27 | ) | $ | 160 | $ | 280 | $ | (120 | ) | ||||||||||
|
Operating
Margin
|
5.5 | % | 7.5 | % | 4.7 | % | 7.8 | % | ||||||||||||||||
|
12
months of fiscal 2008
|
||
|
●
|
Included
$5 million of charges related to impairment of packaging equipment and
severance.
|
|
|
Fourth
quarter and 12 months – Fiscal 2009 vs Fiscal 2008
|
|||
|
●
|
Sales
and Operating Income –
|
||
|
●
|
Operating
results for fiscal 2009 were strong, but down when compared to the record
year we had in fiscal 2008. While sales volume increased compared to the
fourth quarter of fiscal 2008 and were relatively flat versus the 12
months of fiscal 2008, results were negatively impacted by a decrease in
our average sales prices, which were only partially offset by the decrease
in average live costs. Our operating margins were 5.5% and 4.7%,
respectively, for the fourth quarter and 12 months of fiscal 2009. The
fourth quarter operating margin exceeded our historical normalized
operating margin range, while the 12 months of fiscal 2009 was within the
historical normalized operating margin range, which is
3.0-5.0%.
|
||
|
●
|
Derivative
Activities – Operating results included the following amounts for
commodity risk management activities related to forward futures contracts
for live hogs. These amounts exclude the impact from related physical sale
and purchase transactions, which impact current and future period
operating results.
|
||
|
Income
- in millions
|
Qtr
|
YTD
|
||||||
|
2009
|
$ | 8 | $ | 55 | ||||
|
2008
|
13 | 95 | ||||||
|
Decline
|
$ | (5 | ) | $ | (40 | ) | ||
TYSON
FOODS, INC.
November
23, 2009
Page 6 of
10
Prepared
Foods
|
in
millions
|
||||||||||||||||||||||||
|
Three
Months Ended
|
12
Months Ended
|
|||||||||||||||||||||||
|
October
3,
|
Sept.
27,
|
October
3,
|
Sept.
27,
|
|||||||||||||||||||||
|
2009
|
2008
|
Change
|
2009
|
2008
|
Change
|
|||||||||||||||||||
|
Sales
|
$ | 733 | $ | 717 | $ | 16 | $ | 2,836 | $ | 2,711 | $ | 125 | ||||||||||||
|
Sales
Volume Change
|
11.7 | % | 5.2 | % | ||||||||||||||||||||
|
Avg.
Sales Price Change
|
(8.4 | )% | (0.6 | )% | ||||||||||||||||||||
|
Operating
Income (Loss)
|
$ | 39 | $ | (5 | ) | $ | 44 | $ | 133 | $ | 63 | $ | 70 | |||||||||||
|
Operating
Margin
|
5.3 | % | (0.7 | )% | 4.7 | % | 2.3 | % | ||||||||||||||||
|
12
months of fiscal 2009
|
||
|
●
|
Included
$15 million charge related to closing our Ponca City, Oklahoma, processed
meats plant.
|
|
|
12
months of fiscal 2008
|
||
|
●
|
Included
$10 million of charges related to flood damage, an intangible asset
impairment and severance.
|
|
|
Fourth
quarter and 12 months – Fiscal 2009 vs Fiscal 2008
|
||
|
●
|
Sales
and operating income improved due to an increase in sales volume, as well
as a reduction in raw material costs that exceeded the decrease in our
average sales prices. In addition, we made several operational
improvements in fiscal 2009 that allow us to run our plants more
efficiently. We began realizing the majority of these improvements in our
operating results during the fourth quarter fiscal
2009.
|
|
TYSON
FOODS, INC.
November
23, 2009
Page 7 of
10
TYSON
FOODS, INC.
CONSOLIDATED
CONDENSED STATEMENTS OF INCOME
(In
millions, except per share data)
(Unaudited)
|
Three
Months Ended
|
12
Months Ended
|
|||||||||||||||
|
October
3,
|
Sept.
27,
|
October
3,
|
Sept.
27,
|
|||||||||||||
|
2009
|
2008
|
2009
|
2008
|
|||||||||||||
|
Sales
|
$ | 7,214 | $ | 7,201 | $ | 26,704 | $ | 26,862 | ||||||||
|
Cost
of Sales
|
6,752 | 6,844 | 25,501 | 25,616 | ||||||||||||
| 462 | 357 | 1,203 | 1,246 | |||||||||||||
|
Selling,
General and Administrative
|
224 | 219 | 841 | 879 | ||||||||||||
|
Goodwill
impairment
|
560 | - | 560 | - | ||||||||||||
|
Other
Charges
|
- | - | 17 | 36 | ||||||||||||
|
Operating
Income (Loss)
|
(322 | ) | 138 | (215 | ) | 331 | ||||||||||
|
Other
(Income) Expense:
|
||||||||||||||||
|
Interest
income
|
(3 | ) | (2 | ) | (17 | ) | (9 | ) | ||||||||
|
Interest
expense
|
85 | 56 | 310 | 215 | ||||||||||||
|
Other,
net
|
- | (5 | ) | 18 | (29 | ) | ||||||||||
|
Income
(Loss) from Continuing Operations before
|
||||||||||||||||
|
Income
Taxes and Minority Interest
|
(404 | ) | 89 | (526 | ) | 154 | ||||||||||
|
Income
Tax Expense
|
52 | 44 | 14 | 68 | ||||||||||||
|
Income
(Loss) from Continuing Operations before Minority Interest
|
(456 | ) | 45 | (540 | ) | 86 | ||||||||||
|
Minority
Interest
|
(1 | ) | - | (4 | ) | - | ||||||||||
|
Income
(Loss) from Continuing Operations
|
(455 | ) | 45 | (536 | ) | 86 | ||||||||||
|
Income
(Loss) from Discontinued Operation
|
- | 3 | (1 | ) | - | |||||||||||
|
Net
Income (Loss)
|
$ | (455 | ) | $ | 48 | $ | (537 | ) | $ | 86 | ||||||
|
Weighted
Average Shares Outstanding:
|
||||||||||||||||
|
Class
A Basic
|
302 | 283 | 302 | 281 | ||||||||||||
|
Class
B Basic
|
70 | 70 | 70 | 70 | ||||||||||||
|
Diluted
|
372 | 358 | 372 | 356 | ||||||||||||
|
Earnings
(Loss) Per Share from Continuing Operations:
|
||||||||||||||||
|
Class
A Basic
|
$ | (1.25 | ) | $ | 0.13 | $ | (1.47 | ) | $ | 0.25 | ||||||
|
Class
B Basic
|
$ | (1.12 | ) | $ | 0.11 | $ | (1.32 | ) | $ | 0.22 | ||||||
|
Diluted
|
$ | (1.22 | ) | $ | 0.12 | $ | (1.44 | ) | $ | 0.24 | ||||||
|
Earnings
Per Share from Discontinued Operation:
|
||||||||||||||||
|
Class
A Basic
|
$ | - | $ | 0.01 | $ | - | $ | - | ||||||||
|
Class
B Basic
|
$ | - | $ | 0.01 | $ | - | $ | - | ||||||||
|
Diluted
|
$ | - | $ | 0.01 | $ | - | $ | - | ||||||||
|
Net
Earnings (Loss) Per Share:
|
||||||||||||||||
|
Class
A Basic
|
$ | (1.25 | ) | $ | 0.14 | $ | (1.47 | ) | $ | 0.25 | ||||||
|
Class
B Basic
|
$ | (1.12 | ) | $ | 0.12 | $ | (1.32 | ) | $ | 0.22 | ||||||
|
Diluted
|
$ | (1.22 | ) | $ | 0.13 | $ | (1.44 | ) | $ | 0.24 | ||||||
|
Cash
Dividends Per Share:
|
||||||||||||||||
|
Class
A
|
$ | 0.040 | $ | 0.040 | $ | 0.160 | $ | 0.160 | ||||||||
|
Class
B
|
$ | 0.036 | $ | 0.036 | $ | 0.144 | $ | 0.144 | ||||||||
|
Sales
Growth (Decline)
|
0.2 | % | (0.6 | )% | ||||||||||||
|
Margins:
(Percent of Sales)
|
||||||||||||||||
|
Gross
Profit
|
6.4 | % | 5.0 | % | 4.5 | % | 4.6 | % | ||||||||
|
Operating
Income (Loss)
|
(4.5 | )% | 1.9 | % | (0.8 | )% | 1.2 | % | ||||||||
|
Net
Income (Loss)
|
(6.3 | )% | 0.7 | % | (2.0 | )% | 0.3 | % | ||||||||
|
Effective
Tax Rate from Continuing Operations
|
(13.0 | )% | 50.1 | % | (2.7 | )% | 44.6 | % | ||||||||
TYSON
FOODS, INC.
November
23, 2009
Page 8 of
10
TYSON
FOODS, INC.
CONSOLIDATED
CONDENSED BALANCE SHEETS
(In
millions)
(Unaudited)
|
October
3, 2009
|
Sept.
27, 2008
|
|||||||
|
Assets
|
||||||||
|
Current
Assets:
|
||||||||
|
Cash
and cash equivalents
|
$ | 1,004 | $ | 250 | ||||
|
Restricted
cash
|
140 | - | ||||||
|
Accounts
receivable, net
|
1,100 | 1,271 | ||||||
|
Inventories
|
2,009 | 2,538 | ||||||
|
Other
current assets
|
122 | 143 | ||||||
|
Assets
of discontinued operation held for sale
|
- | 159 | ||||||
|
Total
Current Assets
|
4,375 | 4,361 | ||||||
|
Restricted
cash
|
43 | - | ||||||
|
Net
Property, Plant and Equipment
|
3,576 | 3,519 | ||||||
|
Goodwill
|
1,917 | 2,511 | ||||||
|
Intangible
Assets
|
187 | 128 | ||||||
|
Other
Assets
|
497 | 331 | ||||||
|
Total
Assets
|
$ | 10,595 | $ | 10,850 | ||||
|
Liabilities
and Shareholders’ Equity
|
||||||||
|
Current
Liabilities:
|
||||||||
|
Current
debt
|
$ | 219 | $ | 8 | ||||
|
Trade
accounts payable
|
1,013 | 1,217 | ||||||
|
Other
current liabilities
|
761 | 878 | ||||||
|
Total
Current Liabilities
|
1,993 | 2,103 | ||||||
|
Long-Term
Debt
|
3,333 | 2,888 | ||||||
|
Deferred
Income Taxes
|
280 | 291 | ||||||
|
Other
Liabilities
|
539 | 525 | ||||||
|
Minority
Interest
|
98 | 29 | ||||||
|
Shareholders’
Equity
|
4,352 | 5,014 | ||||||
|
Total
Liabilities and Shareholders’ Equity
|
$ | 10,595 | $ | 10,850 | ||||
TYSON
FOODS, INC.
November
23, 2009
Page 9 of
10
TYSON
FOODS, INC.
CONSOLIDATED
CONDENSED STATEMENTS OF CASH FLOWS
(In
millions)
(Unaudited)
|
12
Months Ended
|
||||||||
|
October
3,
|
Sept.
27,
|
|||||||
|
2009
|
2008
|
|||||||
|
Cash
Flows From Operating Activities:
|
||||||||
|
Net
income (loss)
|
$ | (537 | ) | $ | 86 | |||
|
Depreciation
and amortization
|
496 | 493 | ||||||
|
Deferred
income taxes
|
(26 | ) | 35 | |||||
|
Impairment
of goodwill
|
560 | - | ||||||
|
Other,
net
|
100 | 83 | ||||||
|
Net
changes in working capital
|
432 | (409 | ) | |||||
|
Cash
Provided by Operating Activities
|
1,025 | 288 | ||||||
|
Cash
Flows From Investing Activities:
|
||||||||
|
Additions
to property, plant and equipment
|
(368 | ) | (425 | ) | ||||
|
Proceeds
from sale of property, plant and equipment
|
9 | 26 | ||||||
|
Proceeds
from sale of investments
|
15 | 22 | ||||||
|
Purchases
of marketable securities
|
(37 | ) | (115 | ) | ||||
|
Proceeds
from sale of marketable securities
|
56 | 112 | ||||||
|
Change
in restricted cash to be used for investing activities
|
(43 | ) | - | |||||
|
Acquisitions,
net of cash acquired
|
(93 | ) | (17 | ) | ||||
|
Proceeds
from sale of discontinued operation
|
75 | - | ||||||
|
Other,
net
|
(41 | ) | (2 | ) | ||||
|
Cash
Used for Investing Activities
|
(427 | ) | (399 | ) | ||||
|
Cash
Flows From Financing Activities:
|
||||||||
|
Net
borrowings (payments) on revolving credit facilities
|
15 | (213 | ) | |||||
|
Payments
of debt
|
(380 | ) | (147 | ) | ||||
|
Net
proceeds from borrowings of debt
|
852 | 449 | ||||||
|
Net
proceeds from Class A Stock offering
|
- | 274 | ||||||
|
Convertible
note hedge transactions
|
- | (94 | ) | |||||
|
Warrant
transactions
|
- | 44 | ||||||
|
Debt
issuance costs
|
(59 | ) | - | |||||
|
Purchases
of treasury shares
|
(19 | ) | (30 | ) | ||||
|
Dividends
|
(60 | ) | (56 | ) | ||||
|
Change
in negative book cash balances
|
(65 | ) | 67 | |||||
|
Change
in restricted cash to be used for financing activities
|
(140 | ) | - | |||||
|
Stock
options exercised and other, net
|
6 | 27 | ||||||
|
Cash
Provided by Financing Activities
|
150 | 321 | ||||||
|
Effect
of Exchange Rate Change on Cash
|
6 | (2 | ) | |||||
|
Increase
in Cash and Cash Equivalents
|
754 | 208 | ||||||
|
Cash
and Cash Equivalents at Beginning of Year
|
250 | 42 | ||||||
|
Cash
and Cash Equivalents at End of Year
|
$ | 1,004 | $ | 250 | ||||
TYSON
FOODS, INC.
November
23, 2009
Page 10
of 10
Tyson
Foods, Inc., founded in 1935 with headquarters in Springdale, Arkansas, is the
world’s largest processor and marketer of chicken, beef and pork, the
second-largest food production company in the Fortune 500 and a member of the
S&P 500. The company produces a wide variety of protein-based and prepared
food products and is the recognized market leader in the retail and foodservice
markets it serves. Tyson provides products and service to customers
throughout the United States and more than 90 countries. The company
has approximately 117,000 Team Members employed at more than 400 facilities and
offices in the United States and around the world. Through its Core
Values, Code of Conduct and Team Member Bill of Rights, Tyson strives to operate
with integrity and trust and is committed to creating value for its
shareholders, customers and Team Members. The company also strives to be
faith-friendly, provide a safe work environment and serve as stewards of the
animals, land and environment entrusted to it.
A
conference call to discuss the Company’s financial results will be held at 9
a.m. Eastern Monday, November 23, 2009. To listen live via telephone, call
888-324-8506. A pass code and the leader’s name will be required to join the
call. The pass code is Tyson Foods and the leader’s name is Ruth Ann
Wisener. International callers dial 517-308-9399. The call also will
be webcast live on the Internet at http://ir.tyson.com. Financial information,
such as this news release, as well as other supplemental data, including Company
distribution channel information, can be accessed from the Company’s web site at
http://ir.tyson.com. A telephone replay will be available through December 23 at
800-873-2049. International callers dial 402-220-5369.
Forward-Looking
Statements
Certain
information contained in the press release may constitute forward-looking
statements, such as statements relating to expected earnings and results. These
forward-looking statements are subject to a number of factors and uncertainties
which could cause our actual results and experiences to differ materially from
the anticipated results and expectations, expressed in such forward-looking
statements. We wish to caution readers not to place undue reliance on any
forward-looking statements, which speak only as of the date made. Among the
factors that may cause actual results and experiences to differ from anticipated
results and expectations expressed in such forward-looking statements are the
following: (i) the effect of, or changes in, general economic conditions; (ii)
fluctuations in the cost and availability of inputs and raw materials, such as
live cattle, live swine, feed grains (including corn and soybean meal) and
energy; (iii) market conditions for finished products, including competition
from other global and domestic food processors, supply and pricing of competing
products and alternative proteins and demand for alternative proteins; (iv)
successful rationalization of existing facilities and operating efficiencies of
the facilities; (v) risks associated with our commodity trading risk management
activities; (vi) access to foreign markets together with foreign economic
conditions, including currency fluctuations, import/export restrictions and
foreign politics; (vii) outbreak of a livestock disease (such as avian influenza
(AI) or bovine spongiform encephalopathy (BSE)), which could have an effect on
livestock we own, the availability of livestock we purchase, consumer perception
of certain protein products or our ability to access certain domestic and
foreign markets; (viii) changes in availability and relative costs of labor and
contract growers and our ability to maintain good relationships with employees,
labor unions, contract growers and independent producers providing us livestock;
(ix) issues related to food safety, including costs resulting from product
recalls, regulatory compliance and any related claims or litigation; (x) changes
in consumer preference and diets and our ability to identify and react to
consumer trends; (xi) significant marketing plan changes by large customers or
loss of one or more large customers; (xii) adverse results from litigation;
(xiii) risks associated with leverage, including cost increases due to rising
interest rates or changes in debt ratings or outlook; (xiv) compliance with and
changes to regulations and laws (both domestic and foreign), including changes
in accounting standards, tax laws, environmental laws and occupational, health
and safety laws; (xv) our ability to make effective acquisitions or joint
ventures and successfully integrate newly acquired businesses into existing
operations; (xvi) effectiveness of advertising and marketing programs; and
(xvii) those factors listed under Item 1A. “Risk Factors” included in our
October 3, 2009, Annual Report filed on Form 10-K.