In this file:

 

·         Reuters: Tyson Foods quarterly sales miss estimates on lower pork sales

·         Bloomberg: Tyson Sales Miss Estimates as It Looks to BRF Deal to Expand

 

·         Media Release: Tyson Foods to Acquire Thai and European Operations from BRF S.A.

·         Media Release: Tyson Foods Reports Strong First Quarter Fiscal 2019 Results

 

·         Tyson Foods Unit Worker's Suit Over Maimed Hand Revived

·         Tyson Foods' Q1 Results Fail to Impress Investors

 

 

Tyson Foods quarterly sales miss estimates on lower pork sales

 

Reporting by Jaslein Mahil in Bengaluru; Editing by Shinjini Ganguli, Reuters

via Yahoo! Finance - February 7, 2019

 

(Reuters) - Tyson Foods Inc missed Wall Street estimates for first-quarter revenue on Thursday, as the largest U.S. meat processor was hit by lower average prices of pork, denting its sales.

 

Shares of the Ball Park hotdogs and Jimmy Dean sausages maker fell 1.6 percent to $59.95 in early trading.

 

Sales in the company's pork business fell 8.1 percent, as prices fell on average 4.6 percent compared to last year.

 

China's retaliatory tariffs of more than 60 percent on pork have resulted in oversupplies of hogs in the United States as fewer producers ship them for Chinese consumption.

 

Net income attributable to the company fell to $551 million, or $1.50 per share, in the quarter ended Dec. 29, from $1.63 billion, or $4.40 per share, a year earlier, when it received a one-time tax benefit.

 

Sales fell...

 

more

https://finance.yahoo.com/news/tyson-foods-quarterly-sales-miss-130609626.html

 

 

 

Tyson Sales Miss Estimates as It Looks to BRF Deal to Expand

 

    Company is battling depressed prices amid supply boom

    U.S. meatpacker plans to buy six BRF plants for $340 million

 

By Lydia Mulvany and Isis Almeida, Bloomberg 

February 7, 2019

 

Tyson Foods Inc., the biggest U.S. meat processor, reported sales that missed analyst estimates on the same day the company said it would expand its global footprint by buying poultry plants in Asia and Europe.

 

The company’s pork sales volumes and prices decreased in the first quarter, according to a statement Thursday on earnings. While chicken volumes rose after acquisitions, sales prices still fell. Shares dropped in pre-market trading.

 

The meat giant has been battling lackluster market conditions for some time as a boom in American meat production has dragged prices lower. Tariffs from key trading partners, including China, further added to the glut amid pressure on U.S. exports. To combat the volatility, the company has pushed to expand its global presence while also focusing on offering more value-added products, like chicken nuggets. Earlier Thursday, Tyson said it is purchasing six facilities from Brazil’s BRF SA for $340 million, including operations in Asia and the U.K.

 

Tyson’s stock was down 2.1 percent to $59.60 as of 8:54 a.m. in New York.

 

Commodity companies have struggled to boost profits as changing tastes and a fast-paced lifestyle mean consumers prefer specialty items and easy-to-cook meals. That’s pushed Tyson and its rivals to focus on products such as pre-cut meat. In 2017 and 2018, Tyson spent more than $7 billion on takeovers, including a $2.5 billion deal to buy chicken-nugget maker Keystone Foods.

 

Earlier this week, CNBC reported Tyson held talks to buy closely held meat company Foster Farms for...

 

more, including chart, links    

https://www.bloomberg.com/news/articles/2019-02-07/tyson-foods-profit-tops-estimates-on-boost-from-beef-demand

 

 

Tyson Foods to Acquire Thai and European Operations from BRF S.A.

Acquisition supports Tyson Foods’ valued-added and international growth strategies

 

Source: Tyson Foods, Inc.

via Globe Newswire - February 07, 2019

 

SPRINGDALE, Ark., Feb. 06, 2019 (GLOBE NEWSWIRE) -- Tyson Foods, Inc. (NYSE: TSN) today announced a definitive agreement to acquire the Thai and European operations of BRF S.A. The $340 million (USD) purchase includes four processing facilities in Thailand, one processing facility in the Netherlands and one processing facility in the United Kingdom. This deal builds on the company’s growth strategy to expand offerings of value-added protein in global markets.

 

“As noted when we acquired Keystone Foods on November 30, we believe some of our biggest growth opportunities are in value-added foods and international markets,” said Noel White, president and CEO of Tyson Foods. “In addition to domestic benefits, the Keystone acquisition provided us with a scalable production platform in the Asian poultry market. The acquisition of these BRF facilities will help complement and strengthen our presence in Thailand, and provide new capabilities in Europe, enhancing our ability to serve growing global demand for value-added protein.”

 

The vertically integrated poultry operations in Thailand include a feed mill, hatchery, breeder farms and contract growing operations supplying live birds for the four poultry processing facilities. These four plants produce a wide range of fresh and frozen, value-added raw and fully cooked poultry products including highly specialized cuts for retail and foodservice customers throughout Asia and other export markets, including Europe.

 

The processing locations in the Netherlands and the United Kingdom are supported by in-house innovation capabilities for developing further-processed chicken products for retail and foodservice customers throughout Europe. Products are sold under GrabitsTM, Hot ‘N’ Kickin’Chicken®, Speedy Pollo® and the Sadia® brands, in addition to key customer-owned brands.

 

“It’s estimated that approximately 90 percent of global protein consumption growth will occur outside the United States, with 60 percent of the volume growth coming from Asia over the next 5 years,” said Donnie King, group president of International for Tyson Foods. “Increasing our international footprint with in-country operations and export capabilities will help Tyson Foods strategically access new markets and better serve the growing global demand for our value-added protein.”

 

Terms and Conditions

Additional terms of the deal are not being disclosed. The transaction is expected to close before the end of the company’s fiscal third quarter. It is subject to customary closing conditions, including regulatory approvals.

 

BofA Merrill Lynch is acting as exclusive financial adviser to Tyson Foods on the acquisition, and Clifford Chance LLP is acting as its legal counsel for the transaction.

 

Cautionary Statement Regarding Forward-Looking Statements

This communication contains forward-looking statements, including statements regarding expected growth in protein consumption and the expected consummation of the acquisition of the BRF operations and assets described above, which involve a number of risks and uncertainties, including the satisfaction of closing conditions for the acquisition (such as regulatory approval for the transaction); the possibility that some or all of the transaction will not be completed; customer and consumer preferences; the impact of general economic, industry, market or political conditions; the effects of any business combination with existing Tyson Foods operations, including on the combined operations’ future financial condition and performance, operating results, strategy and plans. These statements constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The words “will,” “should,” “estimate,” “expect,” “intend,” “believe” and other similar expressions (or the negative of such terms) are intended to identify forward-looking statements. If underlying assumptions prove inaccurate or unknown risks or uncertainties materialize, actual results and the timing of events may differ materially from the results and/or timing discussed in the forward-looking statements, and readers are cautioned not to place undue reliance on these forward-looking statements. Forward-looking statements speak only as of the date of this communication, and Tyson Foods does not undertake any obligation to update any forward-looking statement except as required by law.

 

About Tyson Foods

Tyson Foods, Inc. (NYSE: TSN) is one of the world’s largest food companies and a recognized leader in protein. Founded in 1935 by John W. Tyson and grown under three generations of family leadership, the company has a broad portfolio of products and brands like Tyson®, Jimmy Dean®, Hillshire Farm®, Ball Park®, Wright®, Aidells®, ibp® and State Fair®. Tyson Foods innovates continually to make protein more sustainable, tailor food for everywhere it’s available and raise the world’s expectations for how much good food can do. Headquartered in Springdale, Arkansas, the company had 121,000 team members at September 29, 2018. Through its Core Values, Tyson Foods strives to operate with integrity, create value for its shareholders, customers, communities and team members and serve as a steward of the animals, land and environment entrusted to it. Visit www.tysonfoods.com

 

Investor Contact: Jon Kathol, 479-290-4235

Media Contact: Worth Sparkman, 479-290-6358         

 

Source: Tyson Foods, Inc.

 

source url

https://globenewswire.com/news-release/2019/02/07/1711893/0/en/Tyson-Foods-to-Acquire-Thai-and-European-Operations-from-BRF-S-A.html

 

 

Tyson Foods Reports Strong First Quarter Fiscal 2019 Results

Prepared Foods Posts Record Q1 Margin; Fiscal Year 2019 Guidance Reaffirmed

Source: Tyson Foods, Inc.

via Globe Newswire - February 07, 2019   

SPRINGDALE, Ark., Feb. 07, 2019 (GLOBE NEWSWIRE) -- Tyson Foods, Inc. (NYSE: TSN), one of the world’s largest food companies and a recognized leader in protein with leading brands including Tyson, Jimmy Dean, Hillshire Farm, Ball Park, Wright, Aidells, ibp and State Fair, today reported the following results:

(in millions, except per share data)

First Quarter

 

2019

 

2018

Sales

$

10,193

 

 

$

10,229

 

Operating Income

807

 

 

922

 

 

 

 

 

Net Income

552

 

 

1,632

 

Less: Net Income Attributable to Noncontrolling Interests

1

 

 

1

 

Net Income Attributable to Tyson

$

551

 

 

$

1,631

 

 

 

 

 

Net Income Per Share Attributable to Tyson

$

1.50

 

 

$

4.40

 

 

 

 

 

Adjusted¹ Operating Income

$

841

 

 

$

945

 

 

 

 

 

Adjusted¹ Net Income Per Share Attributable to Tyson

$

1.58

 

 

$

1.81

 

1 Adjusted operating income and adjusted net income per share attributable to Tyson, or Adjusted EPS, are non-GAAP financial measures and are explained and reconciled to a comparable GAAP measure at the end of this release. Adjusted net income per share attributable to Tyson guidance is provided on a non-GAAP basis because certain information necessary to calculate such measure on a GAAP basis is unavailable, dependent on future events outside of our control and cannot be predicted without unreasonable efforts by the Company. A further explanation of providing non-GAAP guidance is included at the end of this release.


First Quarter Highlights


Guidance

“Our diversified business model continues to set Tyson Foods apart,” said Noel White, Tyson’s president and chief executive officer. “The Prepared Foods and Beef segments delivered strong results in our fiscal first quarter, while the Pork and Chicken segments performed well given market conditions. We’re proud of the growth Prepared Foods has achieved in the past five years and the role it has played in stabilizing volatility while growing earnings. Moving forward, we will remain focused on growing Prepared Foods as well as our value-added and international businesses.

“In the first quarter, we completed the acquisition of Keystone Foods. I’m pleased with the progress of the integration and remain confident Keystone will play an important role as we execute our growth strategy, particularly with strategic customers and in key international markets.

“Fiscal 2019 holds many opportunities for Tyson Foods. Global protein demand remains strong, and we are well positioned to meet the demand with our diversified business model and differentiated portfolio. Our cash flow and strong balance sheet support our capital commitments and our growth strategy. Our team is focused on the success of our stakeholders, and I am confident in our ability to deliver on our fiscal 2019 outlook of $5.75-6.10 adjusted earnings per share while enabling long-term, sustainable growth.”

 

SEGMENT RESULTS (in millions)

Sales

(for the first quarter ended December 29, 2018, and December 30, 2017)

 

First Quarter

 

 

 

Volume

 

Avg. Price

 

2019

 

2018

 

Change

 

Change

Beef

$

3,926

 

 

$

3,886

 

 

(0.9

)%

 

1.9

%

Pork

1,179

 

 

1,283

 

 

(3.6

)%

 

(4.6

)%

Chicken

3,115

 

 

2,997

 

 

17.0

%

 

(13.1

)%

Prepared Foods

2,149

 

 

2,292

 

 

(12.9

)%

 

6.7

%

Other

143

 

 

88

 

 

7.3

%

 

56.5

%

Intersegment Sales

(319

)

 

(317

)

 

n/a

 

 

n/a

 

Total

$

10,193

 

 

$

10,229

 

 

3.3

%

 

(3.7

)%

 

Operating Income (Loss)

(for the first quarter ended December 29, 2018, and December 30, 2017)

 

First Quarter

 

 

 

Operating Margin

 

2019

 

2018

 

2019

 

2018

Beef

$

305

 

 

$

256

 

 

7.8

%

 

6.6

%

Pork

95

 

 

151

 

 

8.1

%

 

11.8

%

Chicken

160

 

 

272

 

 

5.1

%

 

9.1

%

Prepared Foods

265

 

 

256

 

 

12.3

%

 

11.2

%

Other

(18

)

 

(13

)

 

n/a

 

 

n/a

 

Total

$

807

 

 

$

922

 

 

7.9

%

 

9.0

%

Note: On November 30, 2018, we acquired Keystone Foods. The post-acquisition results from operations of this business are included in our Chicken segment for Keystone's domestic operations and Other for Keystone's International business. In fiscal 2018, we acquired Tecumseh Poultry, LLC and American Proteins, Inc. The post-acquisition results from operations of these businesses are included in our Chicken segment. In fiscal 2018, we also completed the sale of four non-protein businesses as part of our strategic focus on protein brands. All of these businesses were part of our Prepared Foods segment and included Sara Lee® Frozen Bakery, Kettle, Van’s®, and TNT Crust. Additionally, in the first quarter of fiscal 2019, we adopted a new defined benefit and other postretirement accounting standard that required retrospective adjustment of prior periods. Accordingly, total Company and Prepared Foods operating income and adjusted operating income for the first quarter of fiscal 2018 were reduced by $5 million.

 

Adjusted Segment Results (in millions)

Adjusted Operating Income (Loss) (Non-GAAP)

(for the first quarter ended December 29, 2018, and December 30, 2017)

 

First Quarter

 

 

 

Adjusted Operating Margin (Non-GAAP)

 

2019

 

2018

 

2019

 

2018

Beef

$

305

 

$

257

 

 

7.8

%

 

6.6

%

Pork

95

 

152

 

 

8.1

%

 

11.8

%

Chicken

173

 

281

 

 

5.6

%

 

9.4

%

Prepared Foods

268

 

268

 

 

12.5

%

 

11.7

%

Other

 

(13

)

 

n/a

 

 

n/a

 

Total

$

841

 

$

945

 

 

8.3

%

 

9.2

%

Note: Adjusted operating income is a non-GAAP financial measure and is explained and reconciled to a comparable GAAP measure at the end of this release.

Adjusted operating income and adjusted operating margin are presented as supplementary measures in the evaluation of our business that are not required by, or presented in accordance with, GAAP. We use adjusted operating income and adjusted operating margin as internal performance measurements and as two criteria for evaluating our performance relative to that of our peers. We believe adjusted operating income and adjusted operating margin are meaningful to our investors to enhance their understanding of our financial performance and are frequently used by securities analysts, investors and other interested parties to compare our performance with the performance of other companies that report adjusted operating income and adjusted operating margin. Further, we believe that adjusted operating income and adjusted operating margin are useful measures because they improve comparability of results of operations from period to period. Adjusted operating income and adjusted operating margin should not be considered as substitutes for operating income, operating margin or any other measure of operating performance reported in accordance with GAAP. Investors should rely primarily on our GAAP results and use non-GAAP financial measures only supplementally in making investment decisions. Our calculation of adjusted operating income and adjusted operating margin may not be comparable to similarly titled measures reported by other companies.


Summary of Segment Results

 

Outlook

For fiscal 2019, USDA indicates domestic protein production (beef, pork, chicken and turkey) should increase approximately 3% from fiscal 2018 levels, but we expect domestic availability of protein to increase approximately 2% as export markets should absorb a portion of the increase in production. The following is a summary of the outlook for each of our segments, as well as an outlook for sales, capital expenditures, net interest expense, liquidity and tax rate for fiscal 2019.

Adjusted operating margin guidance is provided below on a non-GAAP basis2.

2The Company is not able to reconcile its full-year fiscal 2019 adjusted operating margin guidance to its full-year fiscal 2019 projected GAAP operating margin guidance because certain information necessary to calculate such measure on a GAAP basis is unavailable or dependent on the timing of future events outside of our control. Therefore, because of the uncertainty and variability of the nature of the amount of future adjustments, which could be significant, the Company is unable to provide a reconciliation of this measure without unreasonable effort. Adjusted operating margin should not be considered a substitute for operating margin or any other measure of financial performance reported in accordance with GAAP. Investors should rely primarily on the Company’s GAAP results and use non-GAAP financial measures only supplementally in making investment decisions.

 

 

TYSON FOODS, INC.
CONSOLIDATED CONDENSED STATEMENTS OF INCOME
(In millions, except per share data)
(Unaudited)

 

Three Months Ended

 

December 29, 2018

 

December 30, 2017

Sales

$

10,193

 

 

$

10,229

 

Cost of Sales

8,838

 

 

8,786

 

Gross Profit

1,355

 

 

1,443

 

 

 

 

 

Selling, General and Administrative

548

 

 

521

 

Operating Income

807

 

 

922

 

Other (Income) Expense:

 

 

 

Interest income

(2

)

 

(2

)

Interest expense

99

 

 

88

 

Other, net

(3

)

 

(6

)

Total Other (Income) Expense

94

 

 

80

 

Income before Income Taxes

713

 

 

842

 

Income Tax Expense (Benefit)

161

 

 

(790

)

Net Income

552

 

 

1,632

 

Less: Net Income Attributable to Noncontrolling Interests

1

 

 

1

 

Net Income Attributable to Tyson

$

551

 

 

$

1,631

 

Weighted Average Shares Outstanding:

 

 

 

Class A Basic

294

 

 

296

 

Class B Basic

70

 

 

70

 

Diluted

366

 

 

371

 

Net Income Per Share Attributable to Tyson:

 

 

 

Class A Basic

$

1.54

 

 

$

4.54

 

Class B Basic

$

1.39

 

 

$

4.09

 

Diluted

$

1.50

 

 

$

4.40

 

Dividends Declared Per Share:

 

 

 

Class A

$

0.450

 

 

$

0.375

 

Class B

$

0.405

 

 

$

0.338

 

 

 

 

 

Sales Growth

(0.4

)%

 

 

Margins: (Percent of Sales)

 

 

 

Gross Profit

13.3

%

 

14.1

%

Operating Income

7.9

%

 

9.0

%

Net Income Attributable to Tyson

5.4

%

 

16.0

%

Effective Tax Rate

22.6

%

 

(93.8

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TYSON FOODS, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(In millions)
(Unaudited)

 

December 29, 2018

 

September 29, 2018

Assets

 

 

 

Current Assets:

 

 

 

Cash and cash equivalents

$

400

 

 

$

270

 

Accounts receivable, net

1,892

 

 

1,723

 

Inventories

3,777

 

 

3,513

 

Other current assets

232

 

 

182

 

Total Current Assets

6,301

 

 

5,688

 

Net Property, Plant and Equipment

7,018

 

 

6,169

 

Goodwill

10,814

 

 

9,739

 

Intangible Assets, net

7,441

 

 

6,759

 

Other Assets

761

 

 

754

 

Total Assets

$

32,335

 

 

$

29,109

 

 

 

 

 

Liabilities and Shareholders’ Equity

 

 

 

Current Liabilities:

 

 

 

Current debt

$

3,917

 

 

$

1,911

 

Accounts payable

1,962

 

 

1,694

 

Other current liabilities

1,551

 

 

1,426

 

Total Current Liabilities

7,430

 

 

5,031

 

Long-Term Debt

8,075

 

 

7,962

 

Deferred Income Taxes

2,330

 

 

2,107

 

Other Liabilities

1,241

 

 

1,198

 

 

 

 

 

Total Tyson Shareholders’ Equity

13,127

 

 

12,803

 

Noncontrolling Interests

132

 

 

8

 

Total Shareholders’ Equity

13,259

 

 

12,811

 

 

 

 

 

Total Liabilities and Shareholders’ Equity

$

32,335

 

 

$

29,109

 

 

 

 

 

TYSON FOODS, INC.
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)

 

Three Months Ended

 

December 29, 2018

 

December 30, 2017

Cash Flows From Operating Activities:

 

 

 

Net income

$

552

 

 

$

1,632

 

Depreciation and amortization

250

 

 

229

 

Deferred income taxes

18

 

 

(967

)

Other, net

64

 

 

29

 

Net changes in operating assets and liabilities

(16

)

 

203

 

Cash Provided by Operating Activities

868

 

 

1,126

 

 

 

 

 

Cash Flows From Investing Activities:

 

 

 

Additions to property, plant and equipment

(318

)

 

(296

)

Purchases of marketable securities

(15

)

 

(12

)

Proceeds from sale of marketable securities

15

 

 

9

 

Acquisitions, net of cash acquired

(2,141

)

 

(226

)

Proceeds from sale of business

 

 

125

 

Other, net

10

 

 

(22

)

Cash Used for Investing Activities

(2,449

)

 

(422

)

 

 

 

 

Cash Flows From Financing Activities:

 

 

 

Payments on debt

(12

)

 

(429

)

Proceeds from issuance of debt

1,807

 

 

 

Borrowings on revolving credit facility

 

 

655

 

Payments on revolving credit facility

 

 

(650

)

Proceeds from issuance of commercial paper

5,538

 

 

5,728

 

Repayments of commercial paper

(5,406

)

 

(5,824

)

Purchases of Tyson Class A common stock

(83

)

 

(164

)

Dividends

(134

)

 

(108

)

Stock options exercised

3

 

 

63

 

Other, net

(2

)

 

 

Cash (Used for) Provided by Financing Activities

1,711

 

 

(729

)

Effect of Exchange Rate Changes on Cash

 

 

 

Increase (Decrease) in Cash and Cash Equivalents

130

 

 

(25

)

Cash and Cash Equivalents at Beginning of Year

270

 

 

318

 

Cash and Cash Equivalents at End of Period

$

400

 

 

$

293

 

 

 

 

 

TYSON FOODS, INC.
EBITDA Reconciliations
(In millions)
(Unaudited)

 

Three Months Ended

 

Fiscal Year Ended

 

Twelve Months Ended

 

December 29, 2018

 

December 30, 2017

 

September 29, 2018

 

December 29, 2018

 

 

 

 

 

 

 

Net income

$

552

 

 

$

1,632

 

 

$

3,027

 

 

$

1,947

 

Less: Interest income

(2

)

 

(2

)

 

(7

)

 

(7

)

Add: Interest expense

99

 

 

88

 

 

350

 

 

361

 

Add: Income tax expense (benefit)

161

 

 

(790

)

 

(282

)

 

669

 

Add: Depreciation

184

 

 

175

 

 

723

 

 

732

 

Add: Amortization (a)

63

 

 

51

 

 

210

 

 

222

 

EBITDA

$

1,057

 

 

$

1,154

 

 

$

4,021

 

 

$

3,924

 

 

 

 

 

 

 

 

Adjustments to EBITDA:

 

 

 

 

 

 

Add: One-time cash bonus to frontline employees

$

 

 

$

 

 

$

109

 

 

$

109

 

Add: Keystone purchase accounting and acquisition related costs (b)

26

 

 

 

 

 

 

26

 

Add: Impairments net of realized gain associated with the divestiture of
non-protein businesses (c)

 

 

4

 

 

68

 

 

64

 

Add: Restructuring and related charges

8

 

 

19

 

 

59

 

 

48

 

Total Adjusted EBITDA

$

1,091

 

 

$

1,177

 

 

$

4,257

 

 

$

4,171

 

 

 

 

 

 

 

 

Total gross debt

 

 

 

 

$

9,873

 

 

$

11,992

 

Less: Cash and cash equivalents

 

 

 

 

(270

)

 

(400

)

Less: Short-term investments

 

 

 

 

(1

)

 

(1

)

Total net debt

 

 

 

 

$

9,602

 

 

$

11,591

 

 

 

 

 

 

 

 

Ratio Calculations:

 

 

 

 

 

 

Gross debt/EBITDA

 

 

 

 

2.5x

3.1x

Net debt/EBITDA

 

 

 

 

2.4x

3.0x

 

 

 

 

 

 

 

Gross debt/Adjusted EBITDA

 

 

 

 

2.3x

2.9x

Net debt/Adjusted EBITDA

 

 

 

 

2.3x

2.8x

  1. Excludes the amortization of debt issuance and debt discount expense of $3 million for the three months ended December 29, 2018, and December 30, 2017, and $10 million for the fiscal year ended September 29, 2018, and for the twelve months ended December 29, 2018, as it is included in interest expense.
  2. Keystone acquisition and integration costs for the fiscal year 2019 included $11 million of purchase accounting adjustments and $15 million acquisition related costs.
  3. The fiscal year ended September 29, 2018, included $101 million of impairments, net of realized gains, related to the divestiture of non-protein businesses. The adjustment for the three months ended December 30, 2017 includes a $26 million impairment related to the expected sale of a non-protein business net of a $22 million realized pretax gain associated with the sale of a non-protein business.

EBITDA is defined as net income before interest, income taxes, depreciation and amortization. Net debt to EBITDA (Adjusted EBITDA) represents the ratio of our debt, net of cash and short-term investments, to EBITDA (and to Adjusted EBITDA). EBITDA, Adjusted EBITDA, net debt to EBITDA and net debt to Adjusted EBITDA are presented as supplemental financial measurements in the evaluation of our business. Adjusted EBITDA is a tool intended to assist our management and investors in comparing our performance on a consistent basis for purposes of business decision-making by removing the impact of certain items that management believes do not directly reflect our core operations on an ongoing basis.

We believe the presentation of these financial measures helps management and investors to assess our operating performance from period to period, including our ability to generate earnings sufficient to service our debt, enhances understanding of our financial performance and highlights operational trends. These measures are widely used by investors and rating agencies in the valuation, comparison, rating and investment recommendations of companies; however, the measurements of EBITDA (and Adjusted EBITDA) and net debt to EBITDA (and to Adjusted EBITDA) may not be comparable to those of other companies, which limits their usefulness as comparative measures. EBITDA (and Adjusted EBITDA) and net debt to EBITDA (and to Adjusted EBITDA) are not measures required by or calculated in accordance with generally accepted accounting principles (GAAP) and should not be considered as substitutes for net income or any other measure of financial performance reported in accordance with GAAP or as a measure of operating cash flow or liquidity. EBITDA (and Adjusted EBITDA) is a useful tool for assessing, but is not a reliable indicator of, our ability to generate cash to service our debt obligations because certain of the items added to net income to determine EBITDA (and Adjusted EBITDA) involve outlays of cash. As a result, actual cash available to service our debt obligations will be different from EBITDA (and Adjusted EBITDA). Investors should rely primarily on our GAAP results and use non-GAAP financial measures only supplementally in making investment decisions.

 

 

TYSON FOODS, INC.
EPS Reconciliations
(In millions, except per share data)
(Unaudited)

 

First Quarter

 

Pretax Impact

 

EPS Impact

 

2019

 

2018

 

2019

 

2018

 

 

 

 

 

 

 

 

Reported net income per share attributable to Tyson

 

 

 

 

$

1.50

 

$

4.40

 

 

 

 

 

 

 

 

 

Add: Restructuring and related charges

$

8

 

 

$

19

 

 

0.02

 

0.04

 

 

 

 

 

 

 

 

 

Add: Impairment net of a realized gain associated with the divestiture of
non-protein businesses (a)

$

 

 

$

4

 

 

 

0.05

 

 

 

 

 

 

 

 

 

Add: Keystone purchase accounting and acquisition related costs (b)

$

26

 

 

$

 

 

0.06

 

 

 

 

 

 

 

 

 

 

Less: Tax benefit from remeasurement of net deferred tax liabilities at lower
enacted tax rates

$

 

 

$

 

 

 

(2.68

)

 

 

 

 

 

 

 

 

Adjusted net income per share attributable to Tyson

 

 

 

 

$

1.58

 

$

1.81

 

  1. EPS impact for the first quarter of fiscal 2018 includes a $26 million impairment related to the expected sale of a non-protein business net of a $22 million realized pretax gain associated with the sale of a non-protein business, which combined on an after-tax basis resulted in a $0.05 impact to EPS.
  2. Keystone purchase accounting and acquisition related costs for the first quarter of 2019 included an $11 million purchase accounting adjustment for the fair value step-up of inventory and $15 million of acquisition related costs.

Adjusted net income per share attributable to Tyson (Adjusted EPS) is presented as a supplementary measure of our financial performance that is not required by, or presented in accordance with, GAAP. We use Adjusted EPS as an internal performance measurement and as one criterion for evaluating our performance relative to that of our peers. We believe Adjusted EPS is meaningful to our investors to enhance their understanding of our financial performance and is frequently used by securities analysts, investors and other interested parties to compare our performance with the performance of other companies that report Adjusted EPS. Further, we believe that Adjusted EPS is a useful measure because it improves comparability of results of operations from period to period. Adjusted EPS should not be considered a substitute for net income per share attributable to Tyson or any other measure of financial performance reported in accordance with GAAP. Investors should rely primarily on our GAAP results and use non-GAAP financial measures only supplementally in making investment decisions. Our calculation of Adjusted EPS may not be comparable to similarly titled measures reported by other companies.

Adjusted EPS guidance is provided on a non-GAAP basis. The Company is not able to reconcile its full-year fiscal 2019 Adjusted EPS guidance to its full-year fiscal 2019 projected GAAP EPS guidance because certain information necessary to calculate such measure on a GAAP basis is unavailable or dependent on the timing of future events outside of our control. Therefore, because of the uncertainty and variability of the nature of the amount of future adjustments, which could be significant, the Company is unable to provide a reconciliation of this measure without unreasonable effort.

 

 

 TYSON FOODS, INC.
Operating Income Reconciliation
(In millions)
(Unaudited)

Adjusted Operating Income (Loss)

(for the first quarter ended December 29, 2018)

 

Beef

Pork

Chicken

Prepared Foods

Other

 

Total

Reported operating income (loss)

$

305

 

$

95

 

$

160

 

$

265

 

$

(18

)

 

$

807

 

Add: Restructuring and related charges

 

 

5

 

3

 

 

 

8

 

Add: Keystone purchase accounting and acquisition related costs

 

 

8

 

 

18

 

 

26

 

Adjusted operating income (loss)

$

305

 

$

95

 

$

173

 

$

268

 

$

 

 

$

841

 

 

Adjusted Operating Income (Loss)

(for the first quarter ended December 30, 2017)

 

Beef

Pork

Chicken

Prepared Foods

Other

 

Total

Reported operating income (loss)

$

256

 

$

151

 

$

272

 

$

256

 

$

(13

)

 

$

922

 

Add: Restructuring and related charges

1

 

1

 

9

 

8

 

 

 

19

 

Add: Impairment net of a realized gain associated with the
divestitures of non-protein businesses

 

 

 

4

 

 

 

4

 

Adjusted operating income (loss)

$

257

 

$

152

 

$

281

 

$

268

 

$

(13

)

 

$

945

 

 

Adjusted operating income is presented as a supplementary measure of our operating performance that is not required by, or presented in accordance with, GAAP. We use adjusted operating income as an internal performance measurement and as one criterion for evaluating our performance relative to that of our peers. We believe adjusted operating income is meaningful to our investors to enhance their understanding of our operating performance and is frequently used by securities analysts, investors and other interested parties to compare our performance with the performance of other companies that report adjusted operating income. Further, we believe that adjusted operating income is a useful measure because it improves comparability of results of operations from period to period. Adjusted operating income should not be considered as a substitute for operating income or any other measure of operating performance reported in accordance with GAAP. Investors should rely primarily on our GAAP results and use non-GAAP financial measures only supplementally in making investment decisions. Our calculation of adjusted operating income may not be comparable to similarly titled measures reported by other companies.

Tyson Foods Inc. (NYSE: TSN) is one of the world’s largest food companies and a recognized leader in protein. Founded in 1935 by John W. Tyson and grown under three generations of family leadership, the company has a broad portfolio of products and brands like Tyson®, Jimmy Dean®, Hillshire Farm®, Ball Park®, Wright®, Aidells®, ibp® and State Fair®. Tyson Foods innovates continually to make protein more sustainable, tailor food for everywhere it’s available and raise the world’s expectations for how much good food can do. Headquartered in Springdale, Arkansas, the company had 121,000 team members at September 29, 2018. Through its Core Values, Tyson Foods strives to operate with integrity, create value for its shareholders, customers, communities and team members and serve as a steward of the animals, land and environment entrusted to it. Visit www.tysonfoods.com.

A conference call to discuss the Company's financial results will be held at 9 a.m. Eastern Thursday, February 7, 2019. Participants may pre-register for the call at http://dpregister.com/10126742. Callers who pre-register will be given a conference passcode and unique PIN to gain immediate access to the call and bypass the live operator. Participants may pre-register at any time, including up to and after the call has started. Those without internet access or who are unable to pre-register may dial-in by calling toll free 1-844-890-1795 or international toll 1-412-717-9589.

A live webcast, including slides, will be available on the Tyson Foods Investor Relations website at http://ir.tyson.com. The webcast also can be accessed by using the direct link https://event.on24.com/wcc/r/1891637/C3A75D7EF56B187875DC125D95F0F2ED. A replay of the call will be available until March 7, 2019, toll free at 1-877-344-7529, international toll 1-412-317-0088 or Canada toll free 855-669-9658. The replay access code is 10126742. Financial information, such as this news release, as well as other supplemental data, can be accessed from the Company's web site at http://ir.tyson.com.

To download TSN’s free investor relations app, which offers access to SEC filings, news releases, transcripts, webcasts and presentations, please visit the App Store or https://itunes.apple.com/us/app/tyson-foods-investor-relations/id924277754?ls=1&mt=8 for iPhone, and iPad or Google Play for Android mobile devices at https://play.google.com/store/apps/details?id=com.theirapp.tyson.

Forward-Looking Statements
Certain information in this report constitutes forward-looking statements. Such forward-looking statements include, but are not limited to, current views and estimates of our outlook for fiscal 2019, other future economic circumstances, industry conditions in domestic and international markets, our performance and financial results (e.g., debt levels, return on invested capital, value-added product growth, capital expenditures, tax rates, access to foreign markets and dividend policy). These forward-looking statements are subject to a number of factors and uncertainties that could cause our actual results and experiences to differ materially from 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. We undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. 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) 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;  (ii) market conditions for processed products, including competition from other global and domestic food processors, supply and pricing of competing products and alternative proteins and demand for alternative proteins; (iii) outbreak of a livestock disease (such as avian influenza (AI) or bovine spongiform encephalopathy (BSE)), which could have an adverse 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; (iv) the integration of acquisitions; (v) the effectiveness of our financial fitness program; (vi) the implementation of an enterprise resource planning system; (vii) access to foreign markets together with foreign economic conditions, including currency fluctuations, import/export restrictions and foreign politics; (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) effectiveness of advertising and marketing programs; (xii) our ability to leverage brand value propositions; (xiii) risks associated with leverage, including cost increases due to rising interest rates or changes in debt ratings or outlook; (xiv) impairment in the carrying value of our goodwill or indefinite life intangible assets; (xv) compliance with and changes to regulations and laws (both domestic and foreign), including changes in accounting standards, tax laws, environmental laws, agricultural laws and occupational, health and safety laws; (xvi) adverse results from litigation; (xvii) cyber incidents, security breaches or other disruptions of our information technology systems; (xviii) our ability to make effective acquisitions or joint ventures and successfully integrate newly acquired businesses into existing operations; (xix) risks associated with our commodity purchasing activities; (xx) the effect of, or changes in, general economic conditions; (xxi) significant marketing plan changes by large customers or loss of one or more large customers; (xxii) impacts on our operations caused by factors and forces beyond our control, such as natural disasters, fire, bioterrorism, pandemics or extreme weather; (xxiii) failure to maximize or assert our intellectual property rights; (xxiv) our participation in a multiemployer pension plan; (xxv) the Tyson Limited Partnership’s ability to exercise significant control over the Company; (xxvi) effects related to changes in tax rates, valuation of deferred tax assets and liabilities, or tax laws and their interpretation; (xxvii) volatility in capital markets or interest rates; (xxviii) risks associated with our failure to integrate Keystone Foods’ operations or to realize the targeted cost savings, revenues and other benefits of the acquisition; and (xxix) those factors listed under Item 1A. “Risk Factors” included in our Annual Report filed on Form 10-K for the period ended September 29, 2018.

Media Contact:  Gary Mickelson, 479-290-6111
Investor Contact:  Jon Kathol, 479-290-4235


source url

https://globenewswire.com/news-release/2019/02/07/1712057/0/en/Tyson-Foods-Reports-Strong-First-Quarter-Fiscal-2019-Results.html

 

 

Tyson Foods Unit Worker's Suit Over Maimed Hand Revived

 

Law360

February 6, 2019

 

An Ohio appeals court on Wednesday revived a man’s suit alleging he lost several fingers because his employer, a Tyson Foods subsidiary, and two safety-inspection companies had left an important safety...

 

more, with registration

https://www.law360.com/employment/articles/1126366/tyson-foods-unit-worker-s-suit-over-maimed-hand-revived

 

 

Tyson Foods' Q1 Results Fail to Impress Investors

 

By Adrian Stevens, Market Realist

Feb 7, 2019 

 

Key takeaways

 

Tyson Foods (TSN) reported mixed first-quarter results today. Tyson Foods’ top line remained weak and fell short of analysts’ estimate as lower pricing and weak volumes in the beef, pork, and prepared foods segment remained a drag. Tyson Foods’ adjusted earnings came in ahead of the analysts’ estimate. However, first-quarter EPS declined 12.7% on a YoY basis.

 

The weakness in the bottom line reflected the continued margin compression in the pork segment, higher labor and feed ingredient costs, and lower pricing.

 

Management expects to report net sales of $43 billion in fiscal 2019, driven by improved volumes and mix coupled with the incremental sales from its Keystone acquisition. Meanwhile, Tyson Foods reaffirmed its full-year EPS guidance and expects fiscal 2019 adjusted EPS to be in the range of $5.75 to $6.10. The projected EPS range implies a YoY decline of 1% to 7%. Lower average selling prices, compressed margins in the pork segment, and higher labor and freight costs are expected to hurt the company’s fiscal 2019 adjusted EPS.

 

Tyson Foods announced that it is acquiring the Thai and European operations of BRF S.A. for about $340 million. The acquisition is expected to strengthen its value-added product offerings, which are witnessing healthy demand.

 

Key numbers ...

 

more, including chart

https://marketrealist.com/2019/02/tyson-foods-q1-results-fail-to-impress-investors