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, reported the following results:
(in millions, except per share
data) |
Fourth Quarter |
|
Twelve Months Ended |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Sales |
$ |
13,348 |
|
|
$ |
13,737 |
|
$ |
52,881 |
|
|
$ |
53,282 |
|
|
|
|
|
|
|
|
Operating Income (Loss) |
$ |
(463 |
) |
|
$ |
766 |
|
$ |
(395 |
) |
|
$ |
4,410 |
Adjusted1 Operating Income
(non-GAAP) |
$ |
236 |
|
|
$ |
823 |
|
$ |
933 |
|
|
$ |
4,414 |
|
|
|
|
|
|
|
|
Net Income (Loss) Per Share
Attributable to Tyson |
$ |
(1.31 |
) |
|
$ |
1.50 |
|
$ |
(1.87 |
) |
|
$ |
8.92 |
Adjusted1 Net Income Per Share
Attributable to Tyson (non-GAAP) |
$ |
0.37 |
|
|
$ |
1.63 |
|
$ |
1.34 |
|
|
$ |
8.73 |
1 The Company reports its financial results in accordance with
U.S. generally accepted accounting principles (GAAP). As used in
this table and throughout this earnings release, adjusted operating
income (loss) and adjusted net income (loss) per share attributable
to Tyson (Adjusted EPS) are non-GAAP financial measures. Refer to
the end of this release for an explanation and reconciliation of
these and other non-GAAP financial measures used in this release to
comparable GAAP measures.
Fourth Quarter Highlights
- Sales of $13,348 million, down 2.8% from prior
year
- GAAP operating loss of ($463) million, down 160% from
prior year
- Adjusted operating income of $236 million, down 71%
from prior year
- GAAP EPS of ($1.31), down 187% from prior
year
- Adjusted EPS of $0.37, down 77% from prior
year
- Total Company GAAP operating margin of
(3.5%)
- Total Company adjusted operating margin (non-GAAP) of
1.8%
- Liquidity of approximately $3.0 billion as of September
30, 2023
- Recorded a goodwill impairment charge of $333 million
in our Beef segment
Fiscal 2023 Highlights
- Sales of $52,881 million, down 0.8% from prior
year
- GAAP operating loss of ($395) million, down 109% from
prior year
- Adjusted operating income of $933
million, down 79%
from prior year
- GAAP EPS of ($1.87), down 121% from prior
year
- Adjusted EPS of $1.34, down 85% from prior
year
- Total Company GAAP operating margin of
(0.7%)
- Total Company adjusted operating margin (non-GAAP) of
1.8%
- Announced the closure of six Chicken facilities
expected to reduce costs and improve capacity
utilization
“While economic headwinds persist, we are moving in the right
direction and managing what we can control," said Donnie King,
President & CEO, Tyson Foods. "The decisions we have taken have
made us more operationally efficient and aided a second quarter of
sequential improvement in adjusted operating income. The strategy
and leadership team we have in place will allow us to take
advantage of the long-term opportunities in front of us and drive
shareholder value.”
SEGMENT RESULTS (in millions)
Sales |
(for the fourth quarter and twelve months ended September 30, 2023,
and October 1, 2022) |
|
Fourth Quarter |
Twelve Months Ended |
|
|
|
Volume |
Avg. Price |
|
|
Volume |
Avg. Price |
|
|
2023 |
|
|
2022 |
|
Change |
Change2 |
|
2023 |
|
|
2022 |
|
Change |
Change2 |
Beef |
$ |
5,029 |
|
$ |
4,859 |
|
(6.7 |
)% |
10.2 |
% |
$ |
19,325 |
|
$ |
19,854 |
|
(3.1 |
)% |
0.4 |
% |
Pork |
|
1,494 |
|
|
1,604 |
|
(0.2 |
)% |
(6.7 |
)% |
|
5,768 |
|
|
6,414 |
|
(2.2 |
)% |
(7.9 |
)% |
Chicken |
|
4,155 |
|
|
4,619 |
|
1.7 |
% |
(9.2 |
)% |
|
17,060 |
|
|
16,961 |
|
3.4 |
% |
(1.9 |
)% |
Prepared
Foods |
|
2,502 |
|
|
2,516 |
|
1.0 |
% |
(1.6 |
)% |
|
9,845 |
|
|
9,689 |
|
0.3 |
% |
1.3 |
% |
International/Other |
|
636 |
|
|
638 |
|
4.9 |
% |
(5.2 |
)% |
|
2,515 |
|
|
2,355 |
|
4.9 |
% |
1.9 |
% |
Intersegment
Sales |
|
(468 |
) |
|
(499 |
) |
n/a |
|
n/a |
|
|
(1,632 |
) |
|
(1,991 |
) |
n/a |
|
n/a |
|
Total |
$ |
13,348 |
|
$ |
13,737 |
|
(0.6 |
)% |
(1.4 |
)% |
$ |
52,881 |
|
$ |
53,282 |
|
1.0 |
% |
(1.5 |
)% |
Operating Income (Loss) |
(for the fourth quarter and twelve months ended September 30, 2023,
and October 1, 2022) |
|
Fourth Quarter |
Twelve Months Ended |
|
|
|
Operating Margin |
|
|
Operating Margin |
|
|
2023 |
|
|
2022 |
|
2023 |
2022 |
|
2023 |
|
|
2022 |
2023 |
2022 |
Beef |
$ |
(323 |
) |
$ |
375 |
|
(6.4 |
)% |
7.7 |
% |
$ |
(91 |
) |
$ |
2,502 |
(0.5 |
)% |
12.6 |
% |
Pork |
|
(11 |
) |
|
(55 |
) |
(0.7 |
)% |
(3.4 |
)% |
|
(139 |
) |
|
193 |
(2.4 |
)% |
3.0 |
% |
Chicken |
|
(267 |
) |
|
340 |
|
(6.4 |
)% |
7.4 |
% |
|
(770 |
) |
|
955 |
(4.5 |
)% |
5.6 |
% |
Prepared
Foods |
|
118 |
|
|
111 |
|
4.7 |
% |
4.4 |
% |
|
823 |
|
|
746 |
8.4 |
% |
7.7 |
% |
International/Other |
|
20 |
|
|
(5 |
) |
n/a |
|
n/a |
|
|
(218 |
) |
|
14 |
n/a |
|
n/a |
|
Total |
$ |
(463 |
) |
$ |
766 |
|
(3.5 |
)% |
5.6 |
% |
$ |
(395 |
) |
$ |
4,410 |
(0.7 |
)% |
8.3 |
% |
ADJUSTED SEGMENT RESULTS (in millions)
Adjusted Operating Income (Loss)
(Non-GAAP)1 |
(for the fourth quarter and twelve months ended September 30, 2023,
and October 1, 2022) |
|
Fourth Quarter |
Twelve Months Ended |
|
|
|
Adjusted Operating Margin (Non-GAAP) |
|
|
Adjusted Operating Margin (Non-GAAP) |
|
|
2023 |
|
|
2022 |
|
20232 |
2022 |
|
2023 |
|
2022 |
20232 |
2022 |
Beef |
$ |
17 |
|
$ |
391 |
|
0.3 |
% |
8.0 |
% |
$ |
233 |
|
$ |
2,491 |
1.2 |
% |
12.5 |
% |
Pork |
|
(8 |
) |
|
(50 |
) |
(0.5 |
)% |
(3.1 |
)% |
|
(128 |
) |
|
198 |
(2.2 |
)% |
3.1 |
% |
Chicken |
|
75 |
|
|
337 |
|
1.8 |
% |
7.3 |
% |
|
(77 |
) |
|
926 |
(0.4 |
)% |
5.5 |
% |
Prepared
Foods |
|
151 |
|
|
147 |
|
6.0 |
% |
5.8 |
% |
|
889 |
|
|
782 |
9.0 |
% |
8.1 |
% |
International/Other |
|
1 |
|
|
(2 |
) |
n/a |
|
n/a |
|
|
16 |
|
|
17 |
n/a |
|
n/a |
|
Total |
$ |
236 |
|
$ |
823 |
|
1.8 |
% |
6.0 |
% |
$ |
933 |
|
$ |
4,414 |
1.8 |
% |
8.3 |
% |
2 Average Price Change and Adjusted Operating Margin for the
Chicken segment and Total Company exclude $118 million and $156
million for the three and twelve months ended September 30, 2023,
respectively, of legal contingency accruals recognized as a
reduction to Sales.
OUTLOOKFor fiscal 2024, the United States
Department of Agriculture (USDA) indicates domestic protein
production (beef, pork, chicken and turkey) should decrease
slightly compared to fiscal 2023 levels. The following is a summary
of the updated outlook for each of our segments, as well as an
outlook for revenues, capital expenditures, net interest expense,
liquidity, tax rate and dividends for fiscal 2024. Certain of the
outlook numbers include adjusted operating margin (a non-GAAP
metric) for each segment. The Company is not able to reconcile its
full-year fiscal 2024 projected adjusted results to its fiscal 2024
projected GAAP results because certain information necessary to
calculate such measures 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 and the
amount of any potential applicable future adjustments, which could
be significant, the Company is unable to provide a reconciliation
for these forward-looking non-GAAP measures without unreasonable
effort. Adjusted operating margin should not be considered a
substitute for operating margin or any other measures 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.
BeefUSDA projects domestic production will
decrease approximately 5% in fiscal 2024 as compared to fiscal
2023. We anticipate adjusted operating income (loss) between ($400)
million and breakeven in fiscal 2024.
PorkUSDA projects domestic production will
increase approximately 2% in fiscal 2024 as compared to fiscal
2023. We anticipate adjusted operating income to approximate
breakeven in fiscal 2024.
ChickenUSDA projects chicken production will
increase slightly in fiscal 2024 as compared to fiscal 2023. We
anticipate adjusted operating income of $400 million to $700
million for fiscal 2024.
Prepared FoodsWe anticipate adjusted operating
income of $800 million to $1 billion in fiscal 2024.
International/OtherWe anticipate improved
results from our foreign operations in fiscal 2024.
Total CompanyWe anticipate total company
adjusted operating income of $1.0 billion to $1.5 billion for
fiscal 2024.
RevenueWe expect sales to be relatively flat in
fiscal 2024 as compared to fiscal 2023.
Capital ExpendituresWe expect capital
expenditures between $1.0 billion and $1.5 billion for fiscal 2024.
Capital expenditures include investments in profit improvement
projects as well as projects for maintenance and repair. This
includes completion of capacity expansion projects as well as new
equipment; automation technology; and processes for product
innovation.
Net Interest ExpenseWe expect net interest
expense to approximate $400 million for fiscal 2024.
LiquidityWe expect total liquidity, which was
approximately $3.0 billion as of September 30, 2023, to remain
above our minimum liquidity target of $1.0 billion.
Tax RateWe currently expect our adjusted
effective tax rate to be around 23% for fiscal 2024.
DividendsEffective November 10, 2023, the Board
of Directors increased the quarterly dividend previously declared
on August 10, 2023, to $0.49 per share on our Class A common stock
and $0.441 per share on our Class B common stock. The increased
quarterly dividend is payable on December 15, 2023, to shareholders
of record at the close of business on December 1, 2023. The Board
also declared on November 10, 2023 a quarterly dividend of $0.49
per share on our Class A common stock and $0.441 per share on our
Class B common stock, payable on March 15, 2024, to shareholders of
record at the close of business on March 1, 2024. We anticipate the
remaining quarterly dividends in fiscal 2024 will be $0.49 and
$0.441 per share of our Class A and Class B common stock,
respectively. This results in an annual dividend rate in fiscal
2024 of $1.96 for Class A shares and $1.764 for Class B shares, or
a 2% increase compared to the fiscal 2023 annual dividend rate.
TYSON FOODS, INC.CONSOLIDATED CONDENSED
STATEMENTS OF INCOME(In millions, except per share
data)(Unaudited) |
|
Three Months Ended |
|
Twelve Months Ended |
|
September 30, 2023 |
|
October 1, 2022 |
|
September 30, 2023 |
|
October 1, 2022 |
Sales |
$ |
13,348 |
|
|
$ |
13,737 |
|
|
$ |
52,881 |
|
|
$ |
53,282 |
|
Cost of Sales |
|
12,889 |
|
|
|
12,430 |
|
|
|
50,250 |
|
|
|
46,614 |
|
Gross Profit |
|
459 |
|
|
|
1,307 |
|
|
|
2,631 |
|
|
|
6,668 |
|
|
|
|
|
|
|
|
|
Selling, General and
Administrative |
|
589 |
|
|
|
541 |
|
|
|
2,245 |
|
|
|
2,258 |
|
Goodwill Impairment |
|
333 |
|
|
|
— |
|
|
|
781 |
|
|
|
— |
|
Operating Income (Loss) |
|
(463 |
) |
|
|
766 |
|
|
|
(395 |
) |
|
|
4,410 |
|
Other (Income) Expense: |
|
|
|
|
|
|
|
Interest income |
|
(8 |
) |
|
|
(7 |
) |
|
|
(30 |
) |
|
|
(17 |
) |
Interest expense |
|
93 |
|
|
|
83 |
|
|
|
355 |
|
|
|
365 |
|
Other, net |
|
8 |
|
|
|
24 |
|
|
|
(42 |
) |
|
|
(87 |
) |
Total Other (Income)
Expense |
|
93 |
|
|
|
100 |
|
|
|
283 |
|
|
|
261 |
|
Income (Loss) before Income
Taxes |
|
(556 |
) |
|
|
666 |
|
|
|
(678 |
) |
|
|
4,149 |
|
Income Tax Expense
(Benefit) |
|
(113 |
) |
|
|
129 |
|
|
|
(29 |
) |
|
|
900 |
|
Net Income (Loss) |
|
(443 |
) |
|
|
537 |
|
|
|
(649 |
) |
|
|
3,249 |
|
Less: Net Income (Loss)
Attributable to Noncontrolling Interests |
|
7 |
|
|
|
(1 |
) |
|
|
(1 |
) |
|
|
11 |
|
Net Income (Loss) Attributable
to Tyson |
$ |
(450 |
) |
|
$ |
538 |
|
|
$ |
(648 |
) |
|
$ |
3,238 |
|
Net Income (Loss) Per Share
Attributable to Tyson: |
|
|
|
|
|
|
|
Class A Basic |
$ |
(1.31 |
) |
|
$ |
1.54 |
|
|
$ |
(1.87 |
) |
|
$ |
9.18 |
|
Class B Basic |
$ |
(1.17 |
) |
|
$ |
1.38 |
|
|
$ |
(1.68 |
) |
|
$ |
8.25 |
|
Diluted |
$ |
(1.31 |
) |
|
$ |
1.50 |
|
|
$ |
(1.87 |
) |
|
$ |
8.92 |
|
Dividends Declared Per
Share: |
|
|
|
|
|
|
|
Class A |
$ |
0.480 |
|
|
$ |
0.460 |
|
|
$ |
1.940 |
|
|
$ |
1.855 |
|
Class B |
$ |
0.432 |
|
|
$ |
0.414 |
|
|
$ |
1.746 |
|
|
$ |
1.670 |
|
|
|
|
|
|
|
|
|
Sales (Decline) Growth |
(2.8 |
)% |
|
|
|
(0.8 |
)% |
|
|
Margins: (Percent of
Sales) |
|
|
|
|
|
|
|
Gross Profit |
|
3.4 |
% |
|
|
9.5 |
% |
|
|
5.0 |
% |
|
|
12.5 |
% |
Operating Income (Loss) |
(3.5 |
)% |
|
|
5.6 |
% |
|
(0.7 |
)% |
|
|
8.3 |
% |
Net Income (Loss) Attributable to Tyson |
(3.4 |
)% |
|
|
3.9 |
% |
|
(1.2 |
)% |
|
|
6.1 |
% |
Effective Tax Rate 3 |
|
20.2 |
% |
|
|
19.4 |
% |
|
|
4.3 |
% |
|
|
21.7 |
% |
3 The effective tax rate for the three and twelve months ended
September 30, 2023 is impacted by a $333 million and $781
million goodwill impairment, respectively, as the impairment charge
is non-deductible for income tax purposes.
TYSON FOODS, INC.CONSOLIDATED CONDENSED
BALANCE SHEETS(In
millions)(Unaudited) |
|
September 30, 2023 |
|
October 1, 2022 |
Assets |
|
|
|
Current Assets: |
|
|
|
Cash and cash equivalents |
$ |
573 |
|
$ |
1,031 |
Accounts receivable, net |
|
2,476 |
|
|
2,577 |
Inventories |
|
5,328 |
|
|
5,514 |
Other current assets |
|
345 |
|
|
508 |
Total Current Assets |
|
8,722 |
|
|
9,630 |
Net Property, Plant and
Equipment |
|
9,634 |
|
|
8,685 |
Goodwill |
|
9,878 |
|
|
10,513 |
Intangible Assets, net |
|
6,098 |
|
|
6,252 |
Other Assets |
|
1,919 |
|
|
1,741 |
Total Assets |
$ |
36,251 |
|
$ |
36,821 |
|
|
|
|
Liabilities and
Shareholders’ Equity |
|
|
|
Current Liabilities: |
|
|
|
Current debt |
$ |
1,895 |
|
$ |
459 |
Accounts payable |
|
2,594 |
|
|
2,483 |
Other current liabilities |
|
2,010 |
|
|
2,371 |
Total Current Liabilities |
|
6,499 |
|
|
5,313 |
Long-Term Debt |
|
7,611 |
|
|
7,862 |
Deferred Income Taxes |
|
2,308 |
|
|
2,458 |
Other Liabilities |
|
1,578 |
|
|
1,377 |
|
|
|
|
Total Tyson Shareholders’
Equity |
|
18,133 |
|
|
19,702 |
Noncontrolling Interests |
|
122 |
|
|
109 |
Total Shareholders’
Equity |
|
18,255 |
|
|
19,811 |
|
|
|
|
Total Liabilities and
Shareholders’ Equity |
$ |
36,251 |
|
$ |
36,821 |
TYSON FOODS, INC.CONSOLIDATED CONDENSED
STATEMENTS OF CASH FLOWS(In
millions)(Unaudited) |
|
Twelve Months Ended |
|
September 30, 2023 |
|
October 1, 2022 |
Cash Flows From Operating
Activities: |
|
|
|
Net income (loss) |
$ |
(649 |
) |
|
$ |
3,249 |
|
Depreciation and amortization |
|
1,339 |
|
|
|
1,202 |
|
Deferred income taxes |
|
(183 |
) |
|
|
264 |
|
Impairment of goodwill |
|
781 |
|
|
|
— |
|
Other, net |
|
277 |
|
|
|
76 |
|
Net changes in operating assets and liabilities |
|
187 |
|
|
|
(2,104 |
) |
Cash Provided by Operating
Activities |
|
1,752 |
|
|
|
2,687 |
|
|
|
|
|
Cash Flows From Investing
Activities: |
|
|
|
Additions to property, plant and equipment |
|
(1,939 |
) |
|
|
(1,887 |
) |
Purchases of marketable securities |
|
(34 |
) |
|
|
(35 |
) |
Proceeds from sale of marketable securities |
|
32 |
|
|
|
34 |
|
Acquisition, net of cash acquired |
|
(262 |
) |
|
|
— |
|
Acquisition of equity investments |
|
(115 |
) |
|
|
(177 |
) |
Other, net |
|
19 |
|
|
|
130 |
|
Cash Used for Investing
Activities |
|
(2,299 |
) |
|
|
(1,935 |
) |
|
|
|
|
Cash Flows From Financing
Activities: |
|
|
|
Proceeds from issuance of debt |
|
1,130 |
|
|
|
103 |
|
Payments on debt |
|
(603 |
) |
|
|
(1,191 |
) |
Proceeds from issuance of commercial paper |
|
7,693 |
|
|
|
— |
|
Repayments of commercial paper |
|
(7,103 |
) |
|
|
— |
|
Purchases of Tyson Class A common stock |
|
(354 |
) |
|
|
(702 |
) |
Dividends |
|
(670 |
) |
|
|
(653 |
) |
Stock options exercised |
|
11 |
|
|
|
126 |
|
Other, net |
|
(16 |
) |
|
|
(6 |
) |
Cash Provided by (Used for)
Financing Activities |
|
88 |
|
|
|
(2,323 |
) |
Effect of Exchange Rate
Changes on Cash |
|
1 |
|
|
|
(35 |
) |
Decrease in Cash and Cash
Equivalents and Restricted Cash |
|
(458 |
) |
|
|
(1,606 |
) |
Cash and Cash Equivalents and
Restricted Cash at Beginning of Year |
|
1,031 |
|
|
|
2,637 |
|
Cash and Cash Equivalents and
Restricted Cash at End of Period |
|
573 |
|
|
|
1,031 |
|
Less: Restricted Cash at End
of Period |
|
— |
|
|
|
— |
|
Cash and Cash Equivalents at
End of Period |
$ |
573 |
|
|
$ |
1,031 |
|
|
|
|
|
Non-GAAP Financial Measures
Adjusted Operating Income (Loss), Adjusted Income (Loss) before
Income Taxes, Adjusted Income Tax Expense (Benefit), Adjusted Net
Income (Loss) Attributable to Tyson and Adjusted EPS, EBITDA,
Adjusted EBITDA, net debt to EBITDA and net debt to Adjusted EBITDA
are presented as supplemental financial measures in the evaluation
of our business that are not required by, or presented in
accordance with GAAP. The non-GAAP financial measures are tools
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. These non-GAAP measures should not be a
substitute for their comparable GAAP financial measures. Investors
should rely primarily on our GAAP results and use non-GAAP
financial measures only supplementally in making investment
decisions. We believe the presentation of these non-GAAP 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. Our calculation of non-GAAP measures
may not be comparable to similarly titled measures reported by
other companies and other companies may not define these non-GAAP
financial measures in the same way, which may limit their
usefulness of comparative measures.
Definitions
EBITDA is defined as net income (loss) before
interest, income taxes, depreciation and amortization. Net debt to
EBITDA (Adjusted EBITDA) represents the ratio of our debt, net of
cash, cash equivalents 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, Adjusted Operating Income (Loss),
Adjusted Income (Loss) before Income Taxes, Adjusted Income Tax
Expense (Benefit), Adjusted Net Income (Loss) Attributable to Tyson
and Adjusted EPS are defined as EBITDA, Operating Income
(Loss), Income (Loss) before Income Taxes, Income Tax Expense
(Benefit), Net Income (Loss) Attributable to Tyson and diluted
earnings per share, respectively, excluding the impacts of any
items that management believes do not directly reflect our core
operations on an ongoing basis.
TYSON FOODS, INC.GAAP
Results to Non-GAAP Results Reconciliations(In
millions, except per share
data)(Unaudited)
Results for the fourth quarter ended September 30,
2023 |
|
Sales |
Cost of Sales |
Selling, General and Administrative |
Goodwill Impairment |
Operating Income (Loss) |
Other (Income) Expense |
Income (Loss) before Income Taxes |
Income Tax Expense (Benefit) |
Net Income (Loss) Attributable to Tyson |
EPS Impact |
GAAP Results |
|
|
|
|
$ |
(463 |
) |
|
$ |
(556 |
) |
$ |
(113 |
) |
$ |
(450 |
) |
$ |
(1.31 |
) |
Production facilities fire costs, net of insurance proceeds5 |
— |
4 |
|
— |
— |
|
4 |
|
— |
|
4 |
|
|
1 |
|
|
3 |
|
|
0.01 |
|
Restructuring and related charges |
— |
6 |
|
25 |
— |
|
31 |
|
— |
|
31 |
|
|
8 |
|
|
23 |
|
|
0.06 |
|
Plant closures |
— |
215 |
|
— |
— |
|
215 |
|
— |
|
215 |
|
|
55 |
|
|
160 |
|
|
0.45 |
|
Legal contingency accruals |
118 |
— |
|
— |
— |
|
118 |
|
— |
|
118 |
|
|
30 |
|
|
88 |
|
|
0.25 |
|
China plant relocation remuneration8 |
— |
(19 |
) |
— |
— |
|
(19 |
) |
— |
|
(19 |
) |
|
(5 |
) |
|
(11 |
) |
|
(0.03 |
) |
Product line discontinuation |
— |
17 |
|
— |
— |
|
17 |
|
— |
|
17 |
|
|
4 |
|
|
13 |
|
|
0.04 |
|
Goodwill impairment7 |
— |
— |
|
— |
333 |
|
333 |
|
— |
|
333 |
|
|
— |
|
|
333 |
|
|
0.93 |
|
Remeasurement of net deferred tax liabilities at lower enacted
state tax rates |
— |
— |
|
— |
— |
|
— |
|
— |
|
— |
|
|
26 |
|
|
(26 |
) |
|
(0.07 |
) |
Impact of antidilutive securities9 |
— |
— |
|
— |
— |
|
— |
|
— |
|
— |
|
|
— |
|
|
— |
|
|
0.04 |
|
Adjusted Non-GAAP Results |
|
|
|
|
$ |
236 |
|
|
$ |
143 |
|
$ |
6 |
|
$ |
133 |
|
$ |
0.37 |
|
Results for the fourth quarter ended October 1,
2022 |
|
Sales |
Cost of Sales |
Selling, General and Administrative |
Goodwill Impairment |
Operating Income (Loss) |
Other (Income) Expense |
Income (Loss) before Income Taxes |
Income Tax Expense (Benefit) |
Net Income (Loss) Attributable to Tyson |
EPS Impact |
GAAP Results |
|
|
|
|
$ |
766 |
|
|
$ |
666 |
|
$ |
129 |
|
$ |
538 |
|
$ |
1.50 |
|
Production facilities fire insurance proceeds, net of costs5 |
— |
(9 |
) |
— |
— |
|
(9 |
) |
2 |
|
(7 |
) |
|
(2 |
) |
|
(5 |
) |
|
(0.01 |
) |
Restructuring and related charges |
— |
18 |
|
48 |
— |
|
66 |
|
— |
|
66 |
|
|
17 |
|
|
49 |
|
|
0.14 |
|
Adjusted Non-GAAP Results |
|
|
|
|
$ |
823 |
|
|
$ |
725 |
|
$ |
144 |
|
$ |
582 |
|
$ |
1.63 |
|
Results for the twelve months ended September 30,
2023 |
|
Sales |
Cost of Sales |
Selling, General and Administrative |
Goodwill Impairment |
Operating Income (Loss) |
Other (Income) Expense |
Income (Loss) before Income Taxes |
Income Tax Expense (Benefit) |
Net Income (Loss) Attributable to Tyson |
EPS Impact |
GAAP Results |
|
|
|
|
$ |
(395 |
) |
|
$ |
(678 |
) |
$ |
(29 |
) |
$ |
(648 |
) |
$ |
(1.87 |
) |
Production facilities fire insurance proceeds, net of costs5 |
— |
(53 |
) |
— |
— |
|
(53 |
) |
(22 |
) |
|
(75 |
) |
|
(17 |
) |
|
(58 |
) |
|
(0.16 |
) |
Restructuring and related charges |
— |
29 |
|
95 |
— |
|
124 |
|
— |
|
|
124 |
|
|
29 |
|
|
95 |
|
|
0.26 |
|
Plant closures |
— |
322 |
|
— |
— |
|
322 |
|
— |
|
|
322 |
|
|
82 |
|
|
240 |
|
|
0.67 |
|
Legal contingency accruals |
156 |
— |
|
— |
— |
|
156 |
|
— |
|
|
156 |
|
|
39 |
|
|
117 |
|
|
0.33 |
|
China plant relocation remuneration8 |
— |
(19 |
) |
— |
— |
|
(19 |
) |
— |
|
|
(19 |
) |
|
(5 |
) |
|
(11 |
) |
|
(0.03 |
) |
Product line discontinuation |
— |
17 |
|
— |
— |
|
17 |
|
— |
|
|
17 |
|
|
4 |
|
|
13 |
|
|
0.04 |
|
Goodwill impairment7 |
— |
— |
|
— |
781 |
|
781 |
|
— |
|
|
781 |
|
|
— |
|
|
757 |
|
|
2.13 |
|
Remeasurement of net deferred tax liabilities at lower enacted
state tax rates |
— |
— |
|
— |
— |
|
— |
|
— |
|
|
— |
|
|
26 |
|
|
(26 |
) |
|
(0.07 |
) |
Impact of antidilutive securities9 |
— |
— |
|
— |
— |
|
— |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
0.04 |
|
Adjusted Non-GAAP Results |
|
|
|
|
$ |
933 |
|
|
$ |
628 |
|
$ |
129 |
|
$ |
479 |
|
$ |
1.34 |
|
Results for the twelve months ended October 1,
2022 |
|
Sales |
Cost of Sales |
Selling, General and Administrative |
Goodwill Impairment |
Operating Income (Loss) |
Other (Income) Expense |
Income (Loss) before Income Taxes |
Income Tax Expense (Benefit) |
Net Income (Loss) Attributable to Tyson |
EPS Impact |
GAAP Results |
|
|
|
|
$ |
4,410 |
|
|
$ |
4,149 |
|
$ |
900 |
|
$ |
3,238 |
|
$ |
8.92 |
|
Production facilities fire insurance proceeds, net of costs5 |
— |
(62 |
) |
— |
— |
|
(62 |
) |
(52 |
) |
|
(114 |
) |
|
(29 |
) |
|
(85 |
) |
|
(0.23 |
) |
Restructuring and related charges |
— |
18 |
|
48 |
— |
|
66 |
|
— |
|
|
66 |
|
|
17 |
|
|
49 |
|
|
0.14 |
|
Remeasurement of net deferred tax liabilities at lower enacted
state tax rates |
— |
— |
|
— |
— |
|
— |
|
— |
|
|
— |
|
|
36 |
|
|
(36 |
) |
|
(0.10 |
) |
Adjusted Non-GAAP Results |
|
|
|
|
$ |
4,414 |
|
|
$ |
4,101 |
|
$ |
924 |
|
$ |
3,166 |
|
$ |
8.73 |
|
TYSON FOODS,
INC.Adjusted Operating Income (Loss) Non-GAAP
Reconciliations(In
millions)(Unaudited)
Adjusted Operating Income (Loss) |
(for the fourth quarter ended September 30, 2023) |
|
Beef |
Pork |
Chicken |
Prepared Foods |
International/Other |
Total |
Reported operating income (loss) |
$ |
(323 |
) |
$ |
(11 |
) |
$ |
(267 |
) |
$ |
118 |
$ |
20 |
|
$ |
(463 |
) |
Add: Production facilities fire
insurance costs, net of proceeds5 |
|
— |
|
|
— |
|
|
4 |
|
|
— |
|
— |
|
|
4 |
|
Add: Restructuring and related
charges |
|
7 |
|
|
3 |
|
|
5 |
|
|
16 |
|
— |
|
|
31 |
|
Add: Plant closures |
|
— |
|
|
— |
|
|
215 |
|
|
— |
|
— |
|
|
215 |
|
Add: Legal contingency
accruals |
|
— |
|
|
— |
|
|
118 |
|
|
— |
|
— |
|
|
118 |
|
Add: Goodwill impairment |
|
333 |
|
|
— |
|
|
— |
|
|
— |
|
— |
|
|
333 |
|
Less: China plant relocation
remuneration |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
(19 |
) |
|
(19 |
) |
Add: Product line
discontinuation |
|
— |
|
|
— |
|
|
— |
|
|
17 |
|
— |
|
|
17 |
|
Adjusted operating income
(loss) |
$ |
17 |
|
$ |
(8 |
) |
$ |
75 |
|
$ |
151 |
$ |
1 |
|
$ |
236 |
|
Adjusted Operating Income (Loss) |
(for the fourth quarter ended October 1, 2022) |
|
Beef |
Pork |
Chicken |
Prepared Foods |
International/Other |
Total |
Reported operating income (loss) |
$ |
375 |
$ |
(55 |
) |
$ |
340 |
|
$ |
111 |
$ |
(5 |
) |
$ |
766 |
|
Less: Production facilities fire
insurance proceeds, net of costs5 |
|
— |
|
— |
|
|
(9 |
) |
|
— |
|
— |
|
|
(9 |
) |
Add: Restructuring and related
charges |
|
16 |
|
5 |
|
|
6 |
|
|
36 |
|
3 |
|
|
66 |
|
Adjusted operating income
(loss) |
$ |
391 |
$ |
(50 |
) |
$ |
337 |
|
$ |
147 |
$ |
(2 |
) |
$ |
823 |
|
Adjusted Operating Income (Loss) |
(for the twelve months ended September 30, 2023) |
|
Beef |
Pork |
Chicken |
Prepared Foods |
International/Other |
Total |
Reported operating income (loss) |
$ |
(91 |
) |
$ |
(139 |
) |
$ |
(770 |
) |
$ |
823 |
$ |
(218 |
) |
$ |
(395 |
) |
Less: Production facilities fire
insurance proceeds, net of costs5 |
|
(42 |
) |
|
— |
|
|
(11 |
) |
|
— |
|
— |
|
|
(53 |
) |
Add: Restructuring and related
charges |
|
33 |
|
|
11 |
|
|
16 |
|
|
49 |
|
15 |
|
|
124 |
|
Add: Plant closures |
|
— |
|
|
— |
|
|
322 |
|
|
— |
|
— |
|
|
322 |
|
Add: Legal contingency
accruals |
|
— |
|
|
— |
|
|
156 |
|
|
— |
|
— |
|
|
156 |
|
Add: Goodwill impairment |
|
333 |
|
|
— |
|
|
210 |
|
|
— |
|
238 |
|
|
781 |
|
Less: China plant relocation
remuneration |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
(19 |
) |
|
(19 |
) |
Add: Product line
discontinuation |
|
— |
|
|
— |
|
|
— |
|
|
17 |
|
— |
|
|
17 |
|
Adjusted operating income
(loss) |
$ |
233 |
|
$ |
(128 |
) |
$ |
(77 |
) |
$ |
889 |
$ |
16 |
|
$ |
933 |
|
Adjusted Operating Income |
(for the twelve months ended October 1, 2022) |
|
Beef |
Pork |
Chicken |
Prepared Foods |
International/Other |
Total |
Reported operating income |
$ |
2,502 |
|
$ |
193 |
$ |
955 |
|
$ |
746 |
$ |
14 |
$ |
4,410 |
|
Less: Production facilities fire
insurance proceeds, net of costs5 |
|
(27 |
) |
|
— |
|
(35 |
) |
|
— |
|
— |
|
(62 |
) |
Add: Restructuring and related
charges |
|
16 |
|
|
5 |
|
6 |
|
|
36 |
|
3 |
|
66 |
|
Adjusted operating income |
$ |
2,491 |
|
$ |
198 |
$ |
926 |
|
$ |
782 |
$ |
17 |
$ |
4,414 |
|
TYSON FOODS, INC.EBITDA and Adjusted
EBITDA Non-GAAP Reconciliations(In
millions)(Unaudited) |
|
Twelve Months Ended |
|
September 30, 2023 |
|
October 1, 2022 |
|
|
|
|
Net income (loss) |
$ |
(649 |
) |
|
$ |
3,249 |
|
Less: Interest income |
|
(30 |
) |
|
|
(17 |
) |
Add: Interest expense |
|
355 |
|
|
|
365 |
|
Add/(Less): Income tax expense
(benefit) |
|
(29 |
) |
|
|
900 |
|
Add: Depreciation |
|
1,100 |
|
|
|
945 |
|
Add: Amortization4 |
|
229 |
|
|
|
246 |
|
EBITDA |
$ |
976 |
|
|
$ |
5,688 |
|
|
|
|
|
Adjustments to EBITDA: |
|
|
|
Less: Production facilities
fire insurance proceeds, net of costs5 |
$ |
(75 |
) |
|
$ |
(114 |
) |
Add: Restructuring and related
charges |
|
124 |
|
|
|
66 |
|
Add: Plant closures |
|
322 |
|
|
|
— |
|
Add: Legal contingency
accruals |
|
156 |
|
|
|
— |
|
Add: Goodwill impairment |
|
781 |
|
|
|
— |
|
Less: China plant relocation
remuneration |
|
(19 |
) |
|
|
— |
|
Add: Product line
discontinuation |
|
17 |
|
|
|
— |
|
Less: Depreciation included in
EBITDA adjustments6 |
|
(133 |
) |
|
|
— |
|
Total Adjusted EBITDA |
$ |
2,149 |
|
|
$ |
5,640 |
|
|
|
|
|
Total gross debt |
|
9,506 |
|
|
|
8,321 |
|
Less: Cash and cash
equivalents |
|
(573 |
) |
|
|
(1,031 |
) |
Less: Short-term investments |
|
(15 |
) |
|
|
(1 |
) |
Total net debt |
$ |
8,918 |
|
|
$ |
7,289 |
|
|
|
|
|
Ratio Calculations: |
|
|
|
Gross debt/EBITDA |
9.7x |
|
1.5x |
Net debt/EBITDA |
9.1x |
|
1.3x |
|
|
|
|
Gross debt/Adjusted
EBITDA |
4.4x |
|
1.5x |
Net debt/Adjusted EBITDA |
4.1x |
|
1.3x |
4 Excludes the amortization of debt issuance and discount
expense of $10 million and $11 million for the twelve months ended
September 30, 2023 and October 1, 2022, respectively, as it is
included in interest expense.
5 Relates to fires at production facilities in Chicken in the
fourth quarter of fiscal 2021 and Beef in the fourth quarter of
fiscal 2019.
6 Removal of accelerated depreciation of $19 million related to
restructuring and related charges and $114 million related to plant
closures for the twelve months ended September 30, 2023 as it
is already included in depreciation expense.
7 Goodwill impairment is non-deductible for income tax purposes
and the EPS impact is net of $24 million associated with Net Income
(Loss) Attributable to Noncontrolling Interests.
8 The China plant relocation remuneration EPS impact is net of
$3 million associated with Net Income (Loss) Attributable to
Noncontrolling Interests.
9 GAAP EPS, Net Income (Loss) Per Share Attributable to Tyson,
excluded the impact of certain antidilutive securities given the
Company incurring a net loss for fiscal 2023. Adjusted Non-GAAP EPS
is in a net income position, and thus, the impact of the otherwise
antidilutive securities under GAAP EPS were added back in the
calculation of Adjusted Non-GAAP EPS.
About Tyson Foods, Inc.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
four 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®. Headquartered in Springdale, Arkansas, the Company had
approximately 139,000 team members on September 30, 2023.
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.
Conference Call Information and Other Selected
DataA conference call to discuss the Company's financial
results will be held at 9 a.m. Eastern Monday, November 13, 2023. A
link for the webcast of the conference call is available on the
Tyson Investor Relations website at http://ir.tyson.com. The
webcast also can be accessed by the following direct link:
https://events.q4inc.com/attendee/104152249. For those who cannot
participate at the scheduled time, a replay of the live webcast and
the accompanying slides will be available at http://ir.tyson.com. A
telephone replay will also be available until Wednesday, December
13, 2023, 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 3023146. 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.
Forward-Looking StatementsCertain information
in this release constitutes forward-looking statements as
contemplated by the Private Securities Litigation Reform Act of
1995. Such forward-looking statements include, but are not limited
to, current views and estimates of our outlook for fiscal 2024,
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 are
expressly qualified in their entirety by this cautionary statement
and 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) global pandemics have had, and
may in the future have, an adverse impact on our business and
operations; (ii) the effectiveness of our financial excellence
programs; (iii) access to foreign markets together with foreign
economic conditions, including currency fluctuations, import/export
restrictions and foreign politics; (iv) cyberattacks, other cyber
incidents, security breaches or other disruptions of our
information technology systems; (v) risks associated with our
failure to consummate favorable acquisition transactions or
integrate certain acquisitions’ operations; (vi) the Tyson Limited
Partnership’s ability to exercise significant control over the
Company; (vii) 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; (viii) 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; (ix) outbreak of a livestock disease (such as
African swine fever (ASF), 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 conduct our operations; (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) significant marketing plan changes by large
customers or loss of one or more large customers; (xiii) our
ability to leverage brand value propositions; (xiv) changes in
availability and relative costs of labor and contract farmers and
our ability to maintain good relationships with team members, labor
unions, contract farmers and independent producers providing us
livestock, including as a result of our plan to relocate certain
corporate team members to our world headquarters in Springdale,
Arkansas; (xv) issues related to food safety, including costs
resulting from product recalls, regulatory compliance and any
related claims or litigation; (xvi) the effect of climate change
and any legal or regulatory response thereto; (xvii) 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; (xviii) adverse results from litigation; (xix) risks
associated with leverage, including cost increases due to rising
interest rates or changes in debt ratings or outlook; (xx)
impairment in the carrying value of our goodwill or indefinite life
intangible assets; (xxi) our participation in a multiemployer
pension plan; (xxii) volatility in capital markets or interest
rates; (xxiii) risks associated with our commodity purchasing
activities; (xxiv) the effect of, or changes in, general economic
conditions; (xxv) impacts on our operations caused by factors and
forces beyond our control, such as natural disasters, fire,
bioterrorism, pandemics, armed conflicts or extreme weather; (xxvi)
failure to maximize or assert our intellectual property rights;
(xxvii) effects related to changes in tax rates, valuation of
deferred tax assets and liabilities, or tax laws and their
interpretation; and (xxviii) the other risks and uncertainties
detailed from time to time in our filings with the Securities and
Exchange Commission, including those included under the captions
"Risk Factors" and "Management's Discussion and Analysis of
Financial Condition and Results of Operations" in our most recent
Annual Report on Form 10-K and Quarterly reports on Form 10-Q.
Media Contact: Laura Burns,
479-713-9890Investor Contact: Sean Cornett, 479-466-0401 |
Source: Tyson Foods,
Inc.Category: IR, Newsroom |
Grafico Azioni Tyson Foods (NYSE:TSN)
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Da Mag 2024 a Giu 2024
Grafico Azioni Tyson Foods (NYSE:TSN)
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Da Giu 2023 a Giu 2024