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Pilgrim’s Pride Ends Fiscal Year 2018 with Net Sales of $10.94 Billion, Operating Income of $496 Million and GAAP EPS of $1.00

GREELEY, Colo., Feb. 13, 2019 (GLOBE NEWSWIRE) — Pilgrim’s Pride Corporation (NASDAQ: PPC) reports fourth quarter and year-end 2018 financial results.

2018 Highlights

Fourth Quarter Results

 
Unaudited (2), In Millions, Except Per Share and Percentages
  Thirteen
Weeks
Ended
  Fourteen
Weeks
Ended
      Fifty-Two
Weeks
Ended
  Fifty-Three
Weeks
Ended
   
  Dec 30, 2018   Dec 31, 2017   Y/Y
Change
  Dec 30, 2018   Dec 31, 2017   Y/Y
Change
Net Sales $2,656.8   $2,742.4   -3.1%   $10,937.8   $10,767.9   +1.6%
GAAP EPS $(0.03)   $0.54   -105.6%   $1.00   $2.79   -64.2%
Operating Income $23.6   $155.0   -84.8%   $495.7   $1,072.3   -53.8%
Adjusted EBITDA (1) $111.0   $241.0   -53.9%   $798.2   $1,388.0   -42.5%
Adjusted EBITDA Margin (1) 4.2%   8.8%   -4.6pts   7.3%   12.9%   -5.6pts
(1) Reconciliations for non-GAAP measures are provided in subsequent sections within this release.
(2) Figures have been adjusted to include full-quarter and year of Moy Park, in accordance to U.S. GAAP.
 

“In the U.S. we endured a very challenging environment in commodity chicken, slower than expected recovery from weather disruptions at some complexes, partially offset by an improvement in operating results from Prepared Foods. In Europe we improved the performance through expected synergies but were impacted by higher feed inputs as a result of a drought that will be passed to our prices in coming quarters. Our Mexican operations produced a very strong first half, a weaker than seasonal Q3, followed by a rebound in Q4. The diversity of our portfolio of bird sizes, geographical market exposure, our culture and our people, are what fundamentally differentiate us from the competition, giving us the potential to reduce volatility and generate higher margins over time, and the results for 2018 represented the power of that strategy. As we begin 2019, conditions in the U.S. commodity markets including exports are already recovering, supporting OECD-FAO data that over the longer term chicken as a protein will continue to outperform in terms of growth potential globally,” stated Bill Lovette, Chief Executive Officer of Pilgrim’s.

“Results from Prepared Foods are accelerating in momentum with a strong 15% increase in volume in the U.S. and 33% increase in Mexico, reflecting the investments we made over the past few years to grow capacities and capabilities to meet customer expectations. The build out for innovation and marketing to drive future strong growth continues. We believe the prospects for more growth remain and the improvement in performance is sustainable. To further support the growth initiatives, we are also transitioning to a more innovative package design.”

“We are continuing to improve the performance of our European (Moy Park) operations. Margins have increased since the acquisition just a year and a half ago, and are moving in a positive trajectory. The integration is better than expected and we have extracted both operating and product synergies with our other geographical facilities. The cost of feed inputs have increased due to the drought in Europe and some of this impact will only be mitigated in coming quarters. However, we have plans in place which, combined with the success in improving the profitability of our prior acquisitions, have reaffirmed our belief we have the methodology and the experienced personnel required to continue growing the operating and financial performance of the U.K. and continental Europe business.”

Conference Call Information

A conference call to discuss Pilgrim’s quarterly results will be held tomorrow, February 14, at 7:00 a.m. MT (9 a.m. ET). Participants are encouraged to pre-register for the conference call using the link below. Callers who pre-register will be given a 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 start time.

To pre-register, go to: https://services.choruscall.com/links/ppc190214.html

You may also reach the pre-registration link by logging in through the investor section of our website at www.pilgrims.com and clicking on the link under “Upcoming Events.”

For those who would like to join the call but have not pre-registered, access is available by dialing +1 (844) 883-3889 within the US, or +1 (412) 317-9245 internationally, and requesting the “Pilgrim’s Pride Conference.” Please note that to submit a question to management during the call, you must be logged in via telephone.

Replays of the conference call will be available on Pilgrim’s website approximately two hours after the call concludes and can be accessed through the “Investor” section of www.pilgrims.com. The webcast will be available for replay through May 14, 2019.

About Pilgrim’s Pride

Pilgrim’s employs approximately 52,100 people and operates chicken processing plants and prepared-foods facilities in 14 states, Puerto Rico, Mexico, the U.K, Ireland and continental Europe. The Company’s primary distribution is through retailers and foodservice distributors. For more information, please visit www.pilgrims.com.

Forward-Looking Statements

Statements contained in this press release that state the intentions, plans, hopes, beliefs, anticipations, expectations or predictions of the future of Pilgrim’s Pride Corporation and its management are considered forward-looking statements. It is important to note that actual results could differ materially from those projected in such forward-looking statements. Factors that could cause actual results to differ materially from those projected in such forward-looking statements include: matters affecting the poultry industry generally; the ability to execute the Company’s business plan to achieve desired cost savings and profitability; future pricing for feed ingredients and the Company’s products; outbreaks of avian influenza or other diseases, either in Pilgrim’s Pride’s flocks or elsewhere, affecting its ability to conduct its operations and/or demand for its poultry products; contamination of Pilgrim’s Pride’s products, which has previously and can in the future lead to product liability claims and product recalls; exposure to risks related to product liability, product recalls, property damage and injuries to persons, for which insurance coverage is expensive, limited and potentially inadequate; management of cash resources; restrictions imposed by, and as a result of, Pilgrim’s Pride’s leverage; changes in laws or regulations affecting Pilgrim’s Pride’s operations or the application thereof; new immigration legislation or increased enforcement efforts in connection with existing immigration legislation that cause the costs of doing business to increase, cause Pilgrim’s Pride to change the way in which it does business, or otherwise disrupt its operations; competitive factors and pricing pressures or the loss of one or more of Pilgrim’s Pride’s largest customers; currency exchange rate fluctuations, trade barriers, exchange controls, expropriation and other risks associated with foreign operations; disruptions in international markets and distribution channel, including anti-dumping proceedings and countervailing duty proceedings; and the impact of uncertainties of litigation as well as other risks described under “Risk Factors” in the Company’s Annual Report on Form 10-K and subsequent filings with the Securities and Exchange Commission. Pilgrim’s Pride Corporation undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

   
Contact: Dunham Winoto
  Director, Investor Relations
  IRPPC@pilgrims.com
  (970) 506-8192
  www.pilgrims.com

PILGRIM’S PRIDE CORPORATION
CONSOLIDATED BALANCE SHEETS
 
             
    December 30, 2018   December 31, 2017
             
    (In thousands, except share and par value data)
Cash and cash equivalents   $ 338,386     $ 581,510  
Restricted cash and cash equivalents   23,192     8,021  
Trade accounts and other receivables, less allowance for doubtful accounts   561,549     565,478  
Accounts receivable from related parties   1,331     2,951  
Inventories   1,159,519     1,255,070  
Income taxes receivable   38,479      
Prepaid expenses and other current assets   112,023     102,550  
Assets held for sale   178     708  
Total current assets   2,234,657     2,516,288  
Noncurrent income taxes receivable        
Deferred tax assets   4,248      
Other long-lived assets   16,717     18,165  
Identified intangible assets, net   564,128     617,163  
Goodwill   949,750     1,001,889  
Property, plant and equipment, net   2,161,702     2,095,147  
Total assets   $ 5,931,202     $ 6,248,652  
         
Accounts payable   $ 830,059     $ 733,027  
Accounts payable to related parties   7,269     2,889  
Revenue contract liability   33,328     36,607  
Accrued expenses and other current liabilities   386,941     410,152  
Income taxes payable   8,221     222,073  
Current maturities of long-term debt   30,405     47,775  
Total current liabilities   1,296,223     1,452,523  
Long-term debt, less current maturities   2,295,190     2,635,617  
Noncurrent income taxes payable   7,731      
Deferred tax liabilities   237,422     208,492  
Other long-term liabilities   75,051     96,359  
Total liabilities   3,911,617     4,392,991  
Commitments and contingencies        
Preferred stock, $.01 par value, 50,000,000 shares authorized; no shares issued        
Common stock, $.01 par value, 800,000,000 shares authorized; 260,396,032 and 260,167,881 shares issued at year-end 2018 and year-end 2017, respectively; 248,965,081 and 248,752,508 shares outstanding at year-end 2018 and year-end 2017, respectively   2,604     2,602  
Treasury stock, at cost, 11,430,951 shares and 11,415,373 shares at year-end 2018 and year-end 2017, respectively   (231,994 )   (231,758 )
Additional paid-in capital   1,945,136     1,932,509  
Retained earnings   421,888     173,943  
Accumulated other comprehensive loss   (127,834 )   (31,140 )
Total Pilgrim’s Pride Corporation stockholders’ equity   2,009,800     1,846,156  
Noncontrolling interest   9,785     9,505  
Total stockholders’ equity   2,019,585     1,855,661  
Total liabilities and stockholders’ equity   $ 5,931,202     $ 6,248,652  

PILGRIM’S PRIDE CORPORATION
CONSOLIDATED AND COMBINED STATEMENTS OF INCOME
(Unaudited)
                         
    Thirteen Weeks Ended   Fourteen Weeks Ended   Fifty-Two Weeks Ended   Fifty-Three Weeks Ended
    December 30, 2018   December 31, 2017   December 30, 2018   December 31, 2017
                 
    (In thousands, except per share data)
Net sales   $ 2,656,789     $ 2,742,352     $ 10,937,784     $ 10,767,863  
Cost of sales   2,544,941     2,480,548     10,094,308     9,296,249  
Gross profit   111,848     261,804     843,476     1,471,614  
Selling, general and administrative expense   85,629     105,508     343,025     389,517  
Administrative restructuring charges   2,584     1,279     4,765     9,775  
Operating income   23,635     155,017     495,686     1,072,322  
Interest expense, net of capitalized interest   36,911     40,868     162,812     107,183  
Interest income   (3,146 )   (4,130 )   (13,811 )   (7,730 )
Foreign currency transaction losses (gains)   19,962     (159 )   17,160     (2,659 )
Miscellaneous, net   (921 )   (1,340 )   (2,702 )   (6,538 )
Income before income taxes   (29,171 )   119,778     332,227     982,066  
Income tax expense   (20,944 )   (14,147 )   85,423     263,899  
Net income   (8,227 )   133,925     246,804     718,167  
Less: Net income from Granite Holdings Sarl prior to acquisition by Pilgrim’s Pride Corporation               23,486  
Less: Net income (loss) attributable to noncontrolling interests   (903 )   (412 )   (1,141 )   102  
Net income (loss) attributable to Pilgrim’s Pride Corporation   $ (7,324 )   $ 134,337     $ 247,945     $ 694,579  
                 
Weighted average shares of common stock outstanding:                
Basic   248,980     248,753     248,945     248,738  
Effect of dilutive common stock equivalents   386     241     204     233  
Diluted   249,366     248,994     249,149     248,971  
                 
Net income attributable to Pilgrim’s Pride Corporation per share of common stock outstanding:                
Basic   $ (0.03 )   $ 0.54     $ 1.00     $ 2.79  
Diluted   $ (0.03 )   $ 0.54     $ 1.00     $ 2.79  

PILGRIM’S PRIDE CORPORATION
CONSOLIDATED AND COMBINED STATEMENTS OF CASH FLOWS
 
    Fifty-Two Weeks Ended   Fifty-Three Weeks Ended
    December 30, 2018   December 31, 2017
         
    (In thousands)
Cash flows from operating activities:                
Net income   $ 246,804     $ 718,167  
Adjustments to reconcile net income to cash provided by operating activities:        
Depreciation and amortization   279,657     277,792  
Asset impairment   3,504     5,156  
Foreign currency transaction losses (gains) related to borrowing arrangements   5,267     (1,387 )
Loss on early extinguishment of debt recognized as a component of interest expense   15,818      
Amortization of bond premium   (668 )   (180 )
Accretion of bond discount   812      
Gain on property disposals   (1,889 )   (506 )
Gain on equity method investments   (63 )   (59 )
Share-based compensation   13,153     3,020  
Deferred income tax expense (benefit)   32,540     (49,963 )
Changes in operating assets and liabilities:        
Trade accounts and other receivables   (10,918 )   (82,169 )
Inventories   83,174     (207,399 )
Prepaid expenses and other current assets   (11,612 )   (14,827 )
Accounts payable and accrued expenses   86,834     (22,827 )
Income taxes   (248,470 )   188,120  
Long-term pension and other postretirement obligations   (6,751 )   (10,864 )
Other   4,458     (753 )
Cash provided by operating activities   491,650     801,321  
Cash flows from investing activities:        
Acquisitions of property, plant and equipment   (348,666 )   (339,872 )
Purchase of acquired business, net of cash acquired       (658,520 )
Proceeds from property disposals   9,775     4,475  
Proceeds from settlement of life insurance contract       1,845  
Cash used in investing activities   (338,891 )   (992,072 )
Cash flows from financing activities:        
Payment of note payable to affiliate       (753,512 )
Proceeds from revolving line of credit and long-term borrowings   748,382     1,871,818  
Payments on revolving line of credit, long-term borrowings and capital lease obligations   (1,117,009 )   (628,677 )
Proceeds from equity contribution under Tax Sharing Agreement between JBS USA Food Company Holdings and Pilgrim’s Pride Corporation   5,558     5,038  
Payment on early extinguishment of debt   (9,781 )    
Capital contributions to subsidiary by noncontrolling stockholders   1,421      
Payment of capitalized loan costs   (12,581 )   (13,631 )
Purchase of common stock under share repurchase program   (236 )   (14,641 )
Cash provided by (used in) financing activities   (384,246 )   466,395  
Effect of exchange rate changes on cash and cash equivalents   3,534     16,364  
Increase in cash and cash equivalents   (227,953 )   292,008  
Cash and cash equivalents, beginning of period   589,531     297,523  
Cash and cash equivalents, end of period   $ 361,578     $ 589,531  
Supplemental Disclosure Information:        
Interest paid (net of amount capitalized)   $ 154,627     $ 81,260  
Income taxes paid   253,932     122,956  
             

PILGRIM’S PRIDE CORPORATION
Selected Financial Information
(Unaudited)

“EBITDA” is defined as the sum of net income (loss) plus interest, taxes, depreciation and amortization. “Adjusted EBITDA” is calculated by adding to EBITDA certain items of expense and deducting from EBITDA certain items of income that we believe are not indicative of our ongoing operating performance consisting of: (i) income (loss) attributable to non-controlling interests, (ii) restructuring charges, (iii) reorganization items, (iv) losses on early extinguishment of debt and (v) foreign currency transaction losses (gains). EBITDA is presented because it is used by management and we believe it is frequently used by securities analysts, investors and other interested parties, in addition to and not in lieu of results prepared in conformity with accounting principles generally accepted in the US (“GAAP”), to compare the performance of companies. We believe investors would be interested in our Adjusted EBITDA because this is how our management analyzes EBITDA. The Company also believes that Adjusted EBITDA, in combination with the Company’s financial results calculated in accordance with GAAP, provides investors with additional perspective regarding the impact of certain significant items on EBITDA and facilitates a more direct comparison of its performance with its competitors. EBITDA and Adjusted EBITDA are not measurements of financial performance under GAAP. They should not be considered as an alternative to cash flow from operating activities or as a measure of liquidity or an alternative to net income as indicators of our operating performance or any other measures of performance derived in accordance with GAAP.

 
PILGRIM’S PRIDE CORPORATION
Reconciliation of Adjusted EBITDA
                 
(Unaudited)   Thirteen Weeks Ended   Fourteen Weeks Ended   Fifty-Two Weeks Ended   Fifty-Three Weeks Ended
    December 30, 2018   December 31, 2017   December 30, 2018   December 31, 2017
                 
    (In thousands)
Net income   $ (8,227 )   $ 133,925     $ 246,804     $ 718,167  
Add:                        
Interest expense, net   33,765     36,738     149,001     99,453  
Income tax expense (benefit)   (20,944 )   (14,147 )   85,423     263,899  
Depreciation and amortization   68,207     73,167     279,657     277,792  
Minus:                
Amortization of capitalized financing costs   1,232     2,839     5,569     5,968  
EBITDA   71,569     226,844     755,316     1,353,343  
Add:                
Foreign currency transaction losses (gains)   19,962     (159 )   17,160     (2,659 )
Acquisition charges       4,567     320     19,606  
Restructuring charges   2,584     1,279     4,765     9,775  
Other non-recurring losses and expenses   16,023     8,066     19,485     8,066  
Minus:                
Net income (loss) attributable to noncontrolling interest   (903 )   (412 )   (1,141 )   102  
Adjusted EBITDA   $ 111,041     $ 241,009     $ 798,187     $ 1,388,029  
 

The summary unaudited consolidated income statement data for the twelve months ended December 30, 2018 (the LTM Period) have been calculated by summing each of the unaudited thirteen week periods within the audited fifty-two week period ended December 30, 2018.

 
PILGRIM’S PRIDE CORPORATION
Reconciliation of LTM Adjusted EBITDA
 
(Unaudited)   Thirteen Weeks Ended   Thirteen Weeks Ended   Thirteen Weeks Ended   Thirteen Weeks Ended   LTM Ended
    April 1, 2018   July 1, 2018   September 30, 2018   December 30, 2018   December 30, 2018
                     
    (In thousands)
Net income   $ 119,224     $ 106,344     $ 29,463     $ (8,227 )   $ 246,804  
Add:                    
Interest expense, net   48,710     35,433     31,093     33,765     149,001  
Income tax expense (benefit)   36,997     38,522     30,848     (20,944 )   85,423  
Depreciation and amortization   69,201     70,278     71,971     68,207     279,657  
Minus:                    
Amortization of capitalized financing costs   940     2,453     944     1,232     5,569  
EBITDA   273,192     248,124     162,431     71,569     755,316  
Add:                    
Foreign currency transaction losses (gains)   (1,721 )   5,630     (6,711 )   19,962     17,160  
Acquisition charges   179     125     16         320  
Restructuring charges   789     1,135     257     2,584     4,765  
Other non-recurring losses and expenses       3,298     164     16,023     19,485  
Minus:                    
Net income (loss) attributable to noncontrolling interest   (194 )   (197 )   153     (903 )   (1,141 )
Adjusted EBITDA   $ 272,633     $ 258,509     $ 156,004     $ 111,041     $ 798,187  

PILGRIM’S PRIDE CORPORATION
Reconciliation of EBITDA Margin
 
(Unaudited)   Thirteen Weeks Ended   Fourteen Weeks Ended   Fifty-Two Weeks Ended   Fifty-Three Weeks Ended   Thirteen Weeks Ended   Fourteen Weeks Ended   Fifty-Two Weeks Ended   Fifty-Three Weeks Ended
    December 30, 2018   December 31, 2017   December 30, 2018   December 31, 2017   December 30, 2018   December 31, 2017   December 30, 2018   December 31, 2017
                                 
    (In thousands)
Net income   $ (8,227 )   $ 133,925     $ 246,804     $ 718,167     (0.31 )%   4.88 %   2.26 %   6.67 %
Add:                                
Interest expense, net   33,765     36,738     149,001     99,453     1.27 %   1.34 %   1.36 %   0.92 %
Income tax expense (benefit)   (20,944 )   (14,147 )   85,423     263,899     (0.79 )%   (0.52 )%   0.78 %   2.45 %
Depreciation and amortization   68,207     73,167     279,657     277,792     2.57 %   2.67 %   2.56 %   2.58 %
Minus:                                
Amortization of capitalized financing costs   1,232     2,839     5,569     5,968     0.05 %   0.10 %   0.05 %   0.06 %
EBITDA   71,569     226,844     755,316     1,353,343     2.69 %   8.27 %   6.91 %   12.57 %
Add:                                
Foreign currency transaction losses (gains)   19,962     (159 )   17,160     (2,659 )   0.75 %   (0.01 )%   0.16 %   (0.02 )%
Acquisition charges       4,567     320     19,606     %   0.17 %   %   0.18 %
Restructuring charges   2,584     1,279     4,765     9,775     0.10 %   0.05 %   0.04 %   0.09 %
Other non-recurring losses and expenses   16,023     8,066     19,485     8,066     0.60 %   0.29 %   0.18 %   0.07 %
Minus:                                
Net income (loss) attributable to noncontrolling interest   (903 )   (412 )   (1,141 )   102     (0.03 )%   (0.02 )%   (0.01 )%   %
Adjusted EBITDA   $ 111,041     $ 241,009     $ 798,187     $ 1,388,029     4.18 %   8.79 %   7.30 %   12.89 %
                                 
Net Revenue:   $ 2,656,789     $ 2,742,352     $ 10,937,784     $ 10,767,863     $ 2,656,789     $ 2,742,352     $ 10,937,784     $ 10,767,863  
                                                                 

A reconciliation of GAAP operating income to adjusted operating income is as follows:

 
PILGRIM’S PRIDE CORPORATION
Reconciliation of Adjusted Operating Income
(Unaudited)
 
  Thirteen Weeks Ended   Fourteen Weeks Ended   Fifty-Two Weeks Ended   Fifty-Three Weeks Ended
  December 30, 2018   December 31, 2017   December 30, 2018   December 31, 2017
               
  (In thousands)
GAAP operating income (U.S. operations) $ (9,579 )   $ 122,370     $ 291,381     $ 841,491  
Administrative restructuring charges (41 )   529     2,140     9,025  
Acquisition charges     4,567     320     19,606  
Other non-recurring losses and expenses 14,867     8,066     14,867     8,066  
Adjusted operating income (U.S. operations) $ 5,247     $ 135,532     $ 308,708     $ 878,188  
               
Adjusted operating income margin (U.S. operations) 0.29 %   7.19 %   4.16 %   11.80 %
               
GAAP operating income (Mexico operations) $ 17,137     $ 7,390     $ 119,649     $ 153,631  
Foreign exchange     6,100         (13,000 )
Adjusted operating income (Mexico operations) $ 17,137     $ 13,490     $ 119,649     $ 140,631  
               
Adjusted operating income margin (Mexico operations) 5.33 %   4.04 %   8.78 %   10.59 %
               
GAAP operating income (Europe operations) $ 15,979     $ 25,231     $ 84,524     $ 77,105  
Administrative restructuring charges 2,625     750     2,625     750  
Other non-recurring losses and expenses 1,156         4,618      
Adjusted operating income (Europe operations) $ 19,760     $ 25,981     $ 91,767     $ 77,855  
               
Adjusted operating income margin (Europe operations) 3.84 %   4.97 %   4.27 %   3.90 %
                       

A reconciliation of net income (loss) attributable to Pilgrim’s Pride Corporation per common diluted share to adjusted net income (loss) attributable to Pilgrim’s Pride Corporation per common diluted share is as follows:

 
PILGRIM’S PRIDE CORPORATION
Reconciliation of Adjusted Net Income
(Unaudited)
 
  Thirteen Weeks Ended   Fourteen Weeks Ended   Fifty-Two Weeks Ended   Fifty-Three Weeks Ended
  December 30, 2018   December 31, 2017   December 30, 2018   December 31, 2017
               
  (In thousands, except per share data)
Net income (loss) attributable to Pilgrim’s Pride Corporation $ (7,324 )   $ 134,337     $ 247,945     $ 694,579  
Adjustments, net of tax:                      
Loss on early extinguishment of debt         12,449     113  
Acquisition and restructuring charges 1,919         3,778     14,282  
Other non-recurring losses and expenses 11,903         14,475      
Foreign currency transaction losses (gains) 14,829     (107 )   12,748     (1,802 )
  $ 21,327     $ 134,230     $ 291,395     $ 707,172  
U.S. Tax Cuts & Jobs Act transition tax         26,400      
Adjusted net income (loss) $ 21,327     $ 134,230     $ 317,795     $ 707,172  
Weighted average diluted shares of common stock outstanding 249,366     248,994     249,149     248,971  
Adjusted net income (loss) per common diluted share $ 0.09     $ 0.54     $ 1.28     $ 2.84  
 

A reconciliation of GAAP to non-GAAP financial measures. Net income (loss) per share is calculated by dividing the net income (loss) attributable to Pilgrim’s Pride Corporation stockholders by the weighted average number of diluted shares.

 
PILGRIM’S PRIDE CORPORATION
Reconciliation of GAAP EPS to Adjusted EPS
(Unaudited)
 
  Thirteen Weeks Ended   Fourteen Weeks Ended   Fifty-Two Weeks Ended   Fifty-Three Weeks Ended
  December 30, 2018   December 31, 2017   December 30, 2018   December 31, 2017
               
  (In thousands, except per share data)
GAAP EPS $ (0.03 )   $ 0.54     $ 1.00     $ 2.79  
Adjustments, net of tax:                      
Loss on early extinguishment of debt         0.05      
Acquisition and restructuring charges 0.01         0.02     0.06  
Other non-recurring losses and expenses 0.05         0.05      
Foreign currency transaction losses (gains) 0.06         0.05     (0.01 )
  $ 0.09     $ 0.54     $ 1.17     $ 2.84  
U.S. Tax Cuts & Jobs Act transition tax         0.11      
Adjusted EPS $ 0.09     $ 0.54     $ 1.28     $ 2.84  
               
Weighted average diluted shares of common stock outstanding 249,366     248,994     249,149     248,971  

PILGRIM’S PRIDE CORPORATION
Supplementary Selected Segment and Geographic Data
(Unaudited)
 
    Thirteen Weeks Ended   Fourteen Weeks Ended   Fifty-Two Weeks Ended   Fifty-Three Weeks Ended
    December 30, 2018   December 31, 2017   December 30, 2018   December 31, 2017
                 
    (In thousands)
Sources of net sales by country of origin:                                
U.S.   $ 1,820,952     $ 1,886,133     $ 7,425,661     $ 7,443,222  
Europe   514,541     522,465     2,148,666     1,996,319  
Mexico   321,296     333,754     1,363,457     1,328,322  
Total net sales   $ 2,656,789     $ 2,742,352     $ 10,937,784     $ 10,767,863  
                 
Sources of cost of sales by country of origin:                
U.S.   $ 1,772,730     $ 1,691,586     $ 6,909,779     $ 6,348,411  
Europe   476,844     472,016     1,977,838     1,808,139  
Mexico   295,465     316,972     1,206,823     1,139,794  
Elimination   (98 )   (26 )   (132 )   (95 )
Total cost of sales   $ 2,544,941     $ 2,480,548     $ 10,094,308     $ 9,296,249  
                 
Sources of gross profit by country of origin:                
U.S.   $ 48,222     $ 194,549     $ 515,882     $ 1,094,811  
Europe   37,697     50,446     170,828     188,180  
Mexico   25,831     16,783     156,634     188,528  
Elimination   98     26     132     95  
Total gross profit   $ 111,848     $ 261,804     $ 843,476     $ 1,471,614  
                 
Sources of operating income by country of origin:                
U.S.   $ (9,579 )   $ 122,370     $ 291,381     $ 841,491  
Europe   15,979     25,231     84,524     77,105  
Mexico   17,137     7,390     119,649     153,631  
Elimination   98     26     132     95  
Total operating income   $ 23,635     $ 155,017     $ 495,686     $ 1,072,322