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Tyson Foods 8-K Report, Financial Results (May 6, 2024)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed May 6, 2024
Period End
May 6, 2024
Security
TSN
In the record · 2016–202610-K1110-Q338-K142

TSN filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 142 current reports (8-K) between 2016 and 2026.

  1. Deal closed8-K · Nov ’18Nov ’18
  2. Leadership change8-K · Oct ’20Oct ’20
  3. Leadership change8-K · Sep ’22Sep ’22
  4. Material agreement8-K · Aug ’26Aug ’26

01—Abstract

Summary

Summary of the 8-K filed May 6, 2024. Cited figures are marked; the original filing is the authoritative source.

Tyson Foods, Inc. (NYSE: TSN) reported second-quarter fiscal 2024 results for the quarter ended March 30, 2024, with sales of $13.07 billiona, down 0.5% from the prior year, and GAAP operating income of $312 million compared with a loss of $49 million a year earlier.

Adjusted operating income (non-GAAP) was $406 millionb versus $65 million, and GAAP EPS was $0.41 versus a loss of $0.28. For the first six months, GAAP operating income rose to $543 million from $418 million and free cash flow (non-GAAP) was $556 million, up $884 million. Management cited a return to year-over-year bottom-line growth and said it expects to keep executing on fundamentals and leveraging its multi-protein portfolio in the back half of the year.

The Chicken segment was a major driver of the improvement, swinging to a GAAP operating income of $158 millionc from a loss of $258 million, while Beef remained loss-making with a GAAP operating loss of $35 million in the quarter and an adjusted operating loss of $(151) million for six months. Liquidity was approximately $4.4 billion at quarter end, and the company issued $1.5 billion of senior notes. The Netherlands facility fire and plant closures contributed charges to the adjusted reconciliations.

For fiscal 2024, Tyson projects total company adjusted operating income of $1.4 billion to $1.8 billiond, sales roughly flat versus fiscal 2023, capital expenditures of $1.2 billion to $1.4 billion, net interest expense of about $400 million, and an adjusted effective tax rate near 24%. The company also expects to use existing liquidity to retire $1.25 billion of senior notes due August 2024. The company notes that GAAP results should be relied on primarily, with non-GAAP measures used only as supplemental information.

02—Key points

Key Highlights

  1. Second-quarter sales of $13,072 million, down 0.5% from $13,133 million a year earlier; six-month sales flat at $26,391 million.
  2. GAAP operating income of $312 million in Q2 versus a $(49) million loss in the prior-year quarter; adjusted operating income of $406 million versus $65 million.
  3. GAAP diluted EPS of $0.41 versus $(0.28) a year earlier; adjusted EPS of $0.62 versus $(0.04).
  4. Chicken segment GAAP operating income of $158 million in Q2 versus a $(258) million loss, while Beef posted a GAAP operating loss of $(35) million.
  5. Six-month free cash flow (non-GAAP) of $556 million, up $884 million from prior year; cash from operations of $1,177 million, up 53%.
  6. Liquidity of approximately $4.4 billion as of March 30, 2024, following issuance of $1.5 billion senior notes.
  7. FY2024 outlook: total company adjusted operating income of $1.4 billion to $1.8 billion; Beef adjusted operating loss of $(400) million to $(100) million; capex of $1.2 billion to $1.4 billion.

03—Questions

Frequently Asked Questions

  1. Did Tyson Foods return to profitability in the second quarter of fiscal 2024?

    Yes, on a GAAP basis. Net income attributable to Tyson was $145 million, or $0.41 per diluted share, compared with a net loss of $97 million, or $(0.28) per share, in the prior-year quarter. Management described this as a return to year-over-year bottom-line growth.

  2. What drove the improvement in operating results?

    The Chicken segment was the largest contributor, with GAAP operating income of $158 million versus a $(258) million loss a year earlier. Pork also improved to a $(1) million GAAP operating loss from $(33) million. Prepared Foods operating income declined slightly to $230 million from $241 million.

  3. How is the Beef segment performing?

    Beef remained unprofitable in the quarter, with a GAAP operating loss of $(35) million and an adjusted operating loss of $(34) million. For the six months, Beef's adjusted operating loss was $(151) million, and the company's fiscal 2024 outlook calls for a Beef adjusted operating loss between $(400) million and $(100) million.

  4. What is the company's full-year fiscal 2024 outlook?

    Tyson expects total company adjusted operating income of $1.4 billion to $1.8 billion and sales relatively flat versus fiscal 2023. It anticipates capital expenditures of $1.2 billion to $1.4 billion, net interest expense of approximately $400 million, and an adjusted effective tax rate around 24%. Chicken adjusted operating income is expected at $700 million to $900 million and Prepared Foods at $850 million to $950 million.

  5. How is Tyson managing its liquidity and debt?

    Liquidity was approximately $4.4 billion as of March 30, 2024, and the company expects it to remain above its $1.0 billion minimum liquidity target. The company issued $1.5 billion of senior notes and plans to use existing liquidity to retire the $1.25 billion senior notes due August 2024.

04—Continue

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